ASX-listed VoIP provide MyNetFone has signed a heads of agreement to acquire IP voice carriage provider Symbio Group.
The company, based in Sydney, will be bought for some four times net earnings with an initial $2 million payment upon completion of the purchase process.
Symbio is expected to contribute some $24 million in revenues to MyNetFone’s bottom line in the 2012 financial year. Some $26 million in revenue is expected in the 2013 financial year.
Net profit after tax contributions are expected to be $2.09 million for 2012 and $4 million for 2013.
The acquisition is also expect to strengthen MyNetFone’s product line-up, cut the costs of service delivery and enable the company to expand overseas.
The deal is subject to shareholder approval at MyNetFone’s forthcoming annual general meeting.
The two companies have worked together for a number of years on product development and VoIP services delivery.
According to MyNetFone, Symbio has enjoyed success in the Australia and New Zealand and is seeking to grow in Singapore through its Symbio Wholesale operation. The company carries more than 1.5 billion minutes of VoIP traffic annually.
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