Vonex (ASX:VN8) to acquire OntheNet for $9.6m

• Vonex (VN8) is set to acquire 100 per cent of the shares in telecommunications business OntheNet for $9.6 million
• The acquisition price comprises $7.7 million in cash payable on the completion of the deal and $1.9 million worth of escrowed shares
• Vonex says this acquisition will “significantly” expand its data network capabilities and introduce a new product offering through colocation and hosting
• Founded in 1994, OntheNet provides data network, hosting/colocation, and voice services to Australian businesses
• Vonex closed 9.2 per cent higher at 8.3 cents this afternoon

Vonex (VN8) is set to acquire 100 per cent of the shares in telecommunications business OntheNet for $9.6 million.

The acquisition price comprises $7.7 million in cash payable on the completion of the deal and $1.9 million worth of escrowed shares.

Vonex said this acquisition would “significantly” expand its data network capabilities and introduce a new product offering through colocation and hosting.

Further, Vonex said following the acquisition, it expected to bolster its annualised recurring revenue to $51 million — a 40 per cent increase from Q4 2022.

Managing Director Matt Fahey said this was a “highly strategic” acquisition for the company.

“It expedites our plan to diversify our product suite — in particular, adding market-leading data network services,” Mr Fahey said.

“OntheNet is a high-quality telco business that delivers data network, voice and hosting/colocation services primarily to business customers.”

Meanwhile, OntheNet Managing Director Tak Woo said the company looked forward to partnering with Vonex.

“Vonex’s technical capability in voice widens the product set that we can offer our customers and is a natural fit with our expertise in data network,” Mr Woo said.

“Vonex’s network of channel partners will provide an exciting growth opportunity and allow us to better leverage our footprint.”

Vonex closed 9.2 per cent higher at 8.3 cents this afternoon.