Hubify says ‘yes’ to initial $4m injection from Optus Managed Service Partnership
Hubify has added $4 million worth of annualised recurring revenue (ARR) to its recently acquired managed service division, after securing a landmark agreement with Optus.
The agreement between SME focused communications and IT leader Hubify (ASX:HFY) and Optus Enterprise has seen a series of existing Optus accounts with selected customers novated to Hubify’s books.
The customers are invoiced directly by Hubify, which provides them with IT services in partnership with Optus.
The customer agreements add ARR of $4 million to Hubify’s managed service accounts, accelerating its organic growth in the arena having entered the space in June with the acquisition of anchor business INCE Pty Ltd.
The $4 million ARR represents a 29% increase to $17.9 million, comparted against the company’s FY21 exit rate of $13.9 million.
It represents the latest step in the company’s work to further its emerging reputation as a one-stop-shop for Australian businesses with offerings across hosted voice, data, cloud services, mobility, cyber security and managed service.
In a release to market today, Optus’ VP customer solutions and cloud, enterprise Theresa Eyssens said there were natural synergies which led to the partnership.
“Optus is pleased the partnership with Hubify will provide increased opportunity to leverage new skills and capabilities in the ongoing delivery of specialised services for our customers,” she said.
Speaking to Stockhead in the wake of the Optus partnership announcement, Hubify CEO Victor Tsaccounis said the agreement supported the company’s dual-pronged strategy for growth both organically and through acquisition.
“The new agreement with Optus will give us the opportunity to do two things,” he said.
“One, it gives us an opportunity to partner and sell with Optus, which will be the case most of the time, where we are brought in as a specialist partner for their enterprise customers and we transact directly with the customers on the services we provide.
“The other is where Optus will subcontract us to manage and build strategic accounts as their supplier.
“It’s exciting, and it brings new opportunities moving forward. We’re already finding new opportunities to support our newly novated customers.”
Hubify’s growth last financial year – when it increased ARR by 63.5% – highlighted the effectiveness of its strategy, and has been further boosted by today’s announcement.
Tsaccounis told Stockhead that the company had no intention of slowing its plan to further cement itself as the provider of choice for SMEs in Australia.
“Our acquisition pipeline comprises both voice and data businesses, and managed service businesses – there’s a really good mix of the two,” he said.
“Acquisition in either of those areas would support our one-stop-shop concept, which is really about delivering mobility, voice, data, cyber security and managed services to Australian businesses.”
This article was developed in collaboration with Hubify, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.