Majority union-owned IT venture GetOnBoard Ventures could attract a significant cash injection following its signing of a memorandum of understanding (MOU) with Australia Net.Com, a diversified industries group.
GetOnBoard was set up by the NSW ALP and the NSW Labor Council a week ago to offer discounted PC and internet packages to the 800,000 members of the two organisations. It currently has the financial backing of Kingsway Capital Group's Australian operations, which has an equity stake of a third of the venture. The ALP and Labor Council owns the remaining two-thirds of GetOnBoard.
The size of the equity investment from Australia Net.Com will be determined in a few weeks following the valuation of GetOnBoard.
"The ultimate size of the equity investment will depend on the valuation which will be determined during the due diligence period," said David Tanevski, Kingsway Capital's executive director. "Australia Net.Com's involvement in GetOnBoard would provide numerous advantages and further assist our rollout plans."
GetOnBoard currently offers PC and internet packages at $9.95 per week for three-and-a-half years or $1680 upfront. With investment from Australia Net.Com, it plans to increase its offerings to include telephony solutions and mobile phones.
The investment will also enable the company to roll out its services throughout Australia; currently it is operating only in New South Wales. It is also looking into providing insurance and financial services in the future.
Under the MOU, Oei Hong Leong, chairman of Australia Net.Com, will be appointed non-executive chairman of GetOnBoard when the final investment agreement is made.