- Amaysim (AYS) will ring in the new year with Jeenee Mobile after completing its acquisition of the mobile virtual network operator (MVNO)
- Jeenee’s 41 700 recurring mobile subscribers will transition to amaysim’s current network platform
- The acquisition will set amaysim back A$7.8 million, securing the provider’s position as Australia’s leading MVNO business
- Although the acquisition has just been finalised, the provider has indicated it is open to exploring additional takeovers in the mobile market
- Amaysim shares have soared 11.5 per cent on the ASX, with stocks selling for 43.5 cents apiece
Amaysim will ring in the new year with Jeenee Mobile after completing its acquisition of the mobile virtual network operator (MVNO).
The takeover will see Jeenee’s 41,700 recurring mobile subscribers transition to amaysim’s current network platform.
The acquisition will set amaysim back A$7.8 million, securing the provider’s position as Australia’s leading MVNO business.
Jeenee’s existing client base can expect little disruption as the acquisition takes shape, with both telcos operating on the Optus network.
According to amaysim, the recent acquisition forms part of its strategy to grow its position in Australia’s mobile market. The provider forecasts the takeover will bring long-term cost benefits, operating leverage and strategic value.
While not expected to impact the company’s numbers during the current financial year, amaysim expects the acquisition will contribute to a solid earnings report in FY2021 and beyond.
Amaysim CEO and managing director Peter O’Connell said the acquisition of Jeenee was a “financially and strategically attractive opportunity.”
“This acquisition further adds to our growing mobile subscriber base, executing on our strategic pillar to grow the mobile business and cement our position as the leading MVNO,” Peter continued.
“Jeenee has a high-quality subscriber base and we look forward to welcoming its customers to the Amaysim Group and providing them with our outstanding customer service,” he stated.
The addition of Jeenee Mobile’s client base brings Amaysim’s total recurring mobile subscribers to 698,600. The MVNO’s additional As You Go clients rounds amaysim’s subscriber base up to over a million as of late November.
Recently, amaysim renewed its network supply agreement (NSA) with Optus and will apply the new terms to all acquired subscribers.
Although the acquisition has just been finalised, the provider has indicated it is open to exploring additional takeovers in the mobile market. The company has received commitments for A$14 million from its syndicate banks to support future acquisitions.
Amaysim shares have soared 11.5 per cent on the ASX at midday trade at 12:15 pm AEDT. Currently, stocks are selling for 43.5 cents apiece in an A$115 million market cap.