Telecommunications innovator Vonex Limited (“Vonex” or the “Company”) (ASX: VN8) is pleased to advise that the Company has completed its acquisition of Network Technology (Aust) Pty Ltd t/as OntheNet (“OntheNet”), first announced to the ASX on 5 October 2022 (the “Acquisition”).
OntheNet provides data network, voice and hosting/colocation services primarily to business customers across Australia. It also brings ownership of its fully redundant core network, peering at major Australian Internet Exchange Points (IXPs) and a Tier 3 Data Centre located on the Gold Coast. OntheNet’s highly skilled workforce of 35 employees, including a large engineering team with strong capabilities in data networking, are now onboarded and contributing to the Company’s mission.
The Acquisition significantly expands Vonex’s data network capabilities and introduces new product offerings in colocation and hosting. The limited overlap between OntheNet and Vonex’s product bases provides a clear opportunity for cross-selling.
The chart below outlines the Company’s combined FY22 pro forma revenue mix post acquisition, reflecting OntheNet having delivered revenue of $15.2 million of which approximately 97% is recurring in nature. From this revenue OntheNet recorded pro forma FY22 EBITDA (unaudited) of $1.9 million.
OntheNet’s high quality revenue and earnings have given the Company a significant step-change in annualised recurring revenue (“ARR”), which has now grown to ~$51 million. The following chart illustrates Vonex’s consistent delivery of growth in ARR over the past 2 years both organically and via targeted M&A.
This Acquisition positions Vonex as a diversified telco and is consistent with the Company’s deliberate strategy to pursue organic growth accelerated via selected acquisitions. Across multiple acquisitions, Vonex has successfully demonstrated its ability to identify, acquire and integrate complementary, high-quality ICT companies that add value to shareholders and customers. Vonex looks forward to integrating OntheNet’s operations with its established full-service telecommunications platform, pursuing significant opportunities to cross-sell additional services to the expanded customer base and to realise synergies including through ownership of a core network.
This announcement has been authorised for release by Matt Fahey, Managing Director of Vonex Ltd.
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If you are interested in the progress of Vonex from an investment perspective, watch our CEO Matthew Fahey presenting at the NWR Virtual Small Cap Conference. This is a great opportunity to learn more about our focus, success to date and more. Watch here: Investor Presentation