Eftel acquires Platform Networks

Will facilitate broader product offering and a move to cloud-based hosting

ASX-listed internet service provider Eftel (ASX: EFT) is to acquire wholesale telecommunications provider Platform Networks for an undisclosed sum.

The acquisition is the third the ISP has made in less than 12 months and follows the acquisition of ClubTelco in April and Rabbit in November.

In an ASX statement, Eftel chief executive Scott Stavretis suggested that the strategy behind the acquisition was one of boosting Eftel’s bottom line.

“Platform Networks has had consistent monthly revenue growth de to a strong demand for their services from a multitude of vendors,” Stavretis said.

“The business brings a current run rate of over $6 million in annual revenue. Combining this business with the strong supply relationships that Eftel has procured will ensure we can add positive EBITDA straight to the bottom line.”

Stavretis said Eftel intended to run the Platform Networks as stand alone business and would focus on adding products such as mobile telephony, 3G and mobile broadband to its offerings.

The chief executive said the acquisition would also ad data centre services to the company’s product suite enabling it to move into the rapidly growing Cloud-based hosting market.

Stavretis, a former Dodo executive, was hired as Eftel’s CEO in April. Stavretis has 15 years' experience in the internet and telecom industries, including working with Dodo from its inception in 2001.

The appointment follows Eftel’s acquisition of national ISP ClubTelco, adding some 60,000 mobile broadband, ADSL and VoIP customers to its books.

In 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.

The company also acquired Melbourne ISP Rabbit Internet in November adding more than 1,500 active internet and telephony accounts to its subscriber base.

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