Home Sports Vonex (ASX:VN8) acquires OntheNet for $9.6 million – The Market Herald

Vonex (ASX:VN8) acquires OntheNet for $9.6 million – The Market Herald

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  • Vonex (VN8) is set to acquire 100 percent of telecommunications business OntheNet for $9.6 million.
  • The purchase price includes $7.7 million in cash, payable upon closing, and $1.9 million in depositary shares.
  • Vonex says the acquisition will “significantly” expand its data network capabilities and introduce a new product offering through co-location and hosting
  • Founded in 1994, OntheNet provides data networking, hosting/location and voice services to Australian businesses.
  • Vonex closed up 9.2 percent at 8.3 cents this afternoon

Vonex (VN8) is set to acquire 100 percent of telecommunications business OntheNet for $9.6 million.

The purchase price includes $7.7 million in cash, payable upon closing, and $1.9 million in depositary shares.

Vonex said the acquisition will expand “significantly”. its data network capabilities and introduce a new product offering through co-location and hosting.

In addition, Vonex said after the acquisition, annual revenue is expected to grow to $51 million, up 40 percent from Q4 2022.

Managing director Matt Fahey said it was a “very strategic” acquisition for the company.

“This accelerates our plan to diversify our product mix — in particular, the addition of market-leading network data services,” Mr. Fahey said.

“OntheNet is a high-quality telecommunications company that provides data network, voice and hosting/location services primarily to business customers.”

Meanwhile, OntheNet CEO Tak Woo said the company is looking forward to partnering with Vonex.

“Vonex’s technical capabilities in voice expand the range of products we can offer our customers and are a natural fit with our expertise in data networks,” said Mr. Wu.

“The Vonex partner network will provide an exciting opportunity for growth and allow us to better leverage our footprint.”

Vonex closed up 9.2 percent at 8.3 cents this afternoon.

https://themarketherald.com.au/vonex-asxvn8-to-acquire-onthenet-for-9-6m-2022-10-05/

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