Join our daily newsletter At The Bell to receive exclusive market insights
Communications company Swoop has sold its voice call termination business to Pivotel for $9 million.
This follows a strategic review of Swoop’s ongoing operations and encompasses the sale of both Voicehub Group and Harbourtel, the entities that own and operate Swoop’s wholesale focused voice call termination business.
The purchase price is comprised of $8 million payable on completion and $1million to be held in escrow – to be adjusted based on the performance of the business for 9 months post completion.
Swoop Chief Executive Officer Alex West said “As we close out FY24 we continue to see the core underlying residential and SMB focused business units deliver strong organic growth across our key products of FW Broadband, NBN, Mobile and Voice.
“Whilst we have seen some growth since the original acquisition of Voicehub, we have made the decision to divest this business in order to focus on our key markets and customers.
“The proceeds of this transaction will provide additional balance sheet flexibility as well as being used to fund growth in our residential infrastructure, mobile and NBN sales engine and provide a stronger operating cash position in the underlying business for FY25.
“We are pleased this process has reached a successful outcome and that our customers and Voicehub staff will find a good home with the Pivotel team. This sets up the business well for FY25 and provides additional firepower for continued organic growth in the year ahead.”
SWP has been trading at 19 cents.
