Tech: Deal flow continues for amaysim as it snaps up smaller rival, investors approve
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Mobile provider amaysim (ASX:AYS) is snapping up competitor OVO Mobile in a $15.8m deal.
It marks the second straight day of newsworthy announcements, following confirmation by amaysim yesterday that it was entertaining offers for its energy utilities business.
Investors approved of the acquisition, sending amaysim shares more than 15 per cent higher after the stock rose by 12.5 per cent yesterday.
The deal will see amaysim take over the OVO name and absorb around 77,000 mobile customers, around 74,000 of which are recurring.
amaysim CEO Peter O’Connell said he expected the integration process to be smooth, after the company completed the integration of its previous acquisition — Jeenee Mobile — in less than three months.
In addition, both OVO and amaysim already use the Optus network, with OVO customers set to “get the benefit of amaysim’s revitalised network supply
agreement (NSA)” with the provider.
amaysim said the deal was part of a targeted strategy to increase its mobile subscriber base, which rose to 821,000 as at May 31 (including the new OVO subscribers).
The company said the transaction was expected to boost earnings in the 2021 financial year, with further uplift expected in FY22. The bulk of the acquisition will be funded through debt facilities, while the deferred consideration component of the deal (up to $3.6m) will be paid in cash.
amaysim also reiterated its full-year core earnings guidance for FY20 of $33m to $39m.
Payments company Novatti (ASX:NOV) flagged the successful integration of Emersion, the business it acquired in early April in a deal worth around $2.5m. Novatti said Emersion, which provides integration software for different business functions, had invoiced around $300,000 and signed six new customers in April and May.