- Telecommunications provider United Networks (UNL) has bought Symmetry Networks and NextCom for a combined total of $340,000
- The acquisitions compliment the buyout of Broadland back in October and will likely increase recurring revenue
- NextCom and Symmetry will be merged UNL’s other businesses to build an overall “service provider pillar”
- Additionally, UNL’s Global SIM offering and eSIM products are gaining more orders and being used in over 120 countries
- United Networks shares have skyrocketed 52.2 per cent and are trading for 3.5 cents each
Telecommunications provider United Networks (UNL) has acquired Symmetry Networks and NextCom for a combined total of $340,000.
The company today entered into binding agreements to buy 100 per cent of Symmetry from global telecoms provider MNF, and NextCom from NextCom Pty Ltd.
NextCom and Symmetry will be merged with the other UNL service provider businesses growing overall “service provider pillar.”
The acquisitions align with UNL’s strategy to increase recurring revenue and are highly EPS (earnings per share) accretive with low double-digit earnings growth expected over the current financial year.
“We expect to be able to integrate the new businesses quickly into our existing structure allowing for a positive contribution to earnings over the year for shareholders,” United Networks CEO Victor Tsaccounis said.
UNL expect the deal will give its recurring revenue a strong boost and open up cross-selling opportunities for the global and mobile business units.
The acquisitions will be funded from internal cash flows over a 15 month period.
UNL has also provided an operational update on integrations and its Global Mobile service.
The company’s Global SIM offering continues to increase to an average $95 per sim which is attributed to a material increase in forward orders.
Its virtual products, including eSIM uptake is increasing internationally with a presence in over 120 countries.
Additionally, UNL is set to launch a referral partnership with local service provider MATE, to offer travel SIM and eSIM products to compliment their new suite of local SIM-only mobile plans.
Further to its announcement on October 21, the company has successfully reorganised its management structure. This includes the appointment of Victor Tsaccounis – the new CEO.
In October, UNL completed its acquisition of telecommunications providers Broadland Solutions and Broadland Victoria.
“These new acquisitions are a significant event for United Networks. It’s the first stage of the new strategy under Victor’s leadership which is focused on the successful integration of the Broadland Group with UNL, and moving quickly to grow the overall business across the multiple pillars,” Company Chairman Anthony Ghattas said.
United Networks shares have skyrocketed 52.2 per cent and are trading for 3.5 cents each at 11:06 am AEDT.