Communications specialist MNF Group (ASX:MNF) has entered into an agreement to acquire Conference Call International (CCI), the largest independent conferencing and collaboration provider in Australia.
Established in 2001, CCI provides its customers with high quality and reliable multi-party audio conferencing and collaboration services. MNF will acquire the company’s service platform and extensive portfolio of 5,000 business and enterprise customers in Australia, New Zealand and the Asia Pacific region, including many top 500 Australian enterprises.
CCI operates three well established brands operating in the audio conferencing and collaboration space in the Australian market – Express Virtual Meetings, Eureka Conferencing and Ozlink. The scalable audio conferencing service platform offers 50% available capacity for growth, and the state of the art collaboration platform is supported by systems and processes to allow for rapid growth into the rapidly emerging audio/desktop/video collaboration market.
MNF already provides enablement, networking and numbering services to most of the leading global audio conferencing and collaboration companies under the group’s Domestic Wholesale and Global Wholesale segments. The acquisition of CCI provides the group with significant growth potential in its Domestic Retail segment, specifically for Business, Enterprise and Government customers.
“The acquisition of CCI provides MNF a significant entry into the audio conferencing and collaboration market in Australia and the region. These applications have the potential for consistent long term growth and innovation potential,” commented Mr Sugo, CEO of MNF Group, “These applications are an excellent fit with the current MNF Business, Enterprise and Government sub-segment, as well as a high value synergy with the groups domestic and global network assets.”
MNF will pay $18.0m ($17.5m net of cash in the business) for CCI, which represents a multiple of 5.0 times current year forecast of $3.5m EBITDA. In addition, MNF has so far identified network and operational synergies of at least $0.5m per annum which are expected to be fully realised in FY18. CCI has an excellent growth record having delivered a 3-year CAGR of 9.6% and 13.4% for revenue and EBITDA respectively, and is strongly placed to pivot into the fast-growing collaboration market. Both businesses will benefit from selling across their customer bases. CCI operates from headquarters outside of Melbourne with an excellent and dedicated team of 23 (FTE) staff.
MNF has funded the acquisition by raising $18.6m through a heavily oversubscribed placement of 4.13m shares to institutional and sophisticated investors at $4.50 per share (representing a 2.8% discount to the 5 day VWAP).
The acquisition is scheduled to complete on 10 February 2017 after customary conditions are met.
About MNF Group Limited
MNF Group Limited (ASX: MNF) is one of Asia-Pacific’s fastest growing technology companies. Listed on the ASX since 2006, it is now capitalised at around $300M, and twice winner of the Forbes Asia-Pacific “Best under a Billion” award. Headquartered in Sydney, Australia, the company has over 250 people located across Asia-Pacific, Europe and North America. MNF develops and operates a global communications network and software suite enabling some of the world’s leading innovators to deliver new-generation communications solutions.
As the world moves to IP, MNF Group is building the brands, services, network and technology to lead the way.
For further information about MNF Group Limited please visit: http://mnfgroup.limited/