Eftel (ASX:EFT) is to acquire national internet service provider (ISP) ClubTelco, adding some 60,000 mobile broadband, ADSL and VoIP customers to its books.
ClubTelco, which was formed by the founders and directors of Dodo, has offices in Queensland, Victoria and the Philippines.
According to an EFTel ASX statement, the purchase which is yet to receive shareholder and regulatory approval, will result in the company doubling its customer base to 120,000 active services and take its turnover to in excess of $55 million.
Eftel’s executive chairman, Simon Ehrenfeld, said the proposed acquisition was the most significant growth opportunity for the company to date.
“Apart from being our largest ever merger or acquisition deal, the proposed transaction introduces a fresh controlling interest in the form of the key stakeholders in Dodo,” the statement reads.
“They are, without peer, the industry’s organic growth champions.”
In early March, Eftel reported a 29.9 per cent wider 1H net loss of $1.3 million. Revenue fell 16 per cent to $15.4 million, and the company booked restructure costs of $525,000.
But Eftel said in a statement that the restructuring costs had been put to good use - the company has reduced operating expenses substantially through simplifying the business.
Eftel acquired Melbourne ISP Rabbit Internet in November adding more than 1500 active internet and telephony accounts to its subscriber base.
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