Uniti Wireless locks in another takeover with Brisbane-based Fone Dynamics joining the fold

Uniti Wireless will acquire a new business and get a new executive under a $5 million takeover announced this morning.

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Uniti Wireless will acquire a new business and get a new executive under a $5 million takeover announced this morning.

The Adelaide company has been on a takeover spree since listing in February, launching a thwarted tilt for Spirit Telecom, baked up by a successful $450,000 offer for Pivit.

It has today announced a deal worth an expected minimum of $5.04 million to buy Fone Dynamics, and will bring on board co-founder Jordan Grives as an executive.

Mr Grives previously founded Fonebox which he sold for a reported $30 million to NASDAQ-listed J2 Global in October, 2016.

Uniti said Fone Dynamics was a “fast growing, specialist Communications Platform-as-a-Service (“CPaaS”) company, focusing on modern inbound voice (including: 13, 1300 & 1800) and business-grade SMS services”.

The payment for Fone Dynamics will be based on a minimum consideration plus a performance-based element.

“Base is expected to be a minimum of $5.04M, based on forecasted June 2019 EBITDA. The maximum aggregate consideration payable (Base + Earn-Out) for Fone Dynamics is $8.4M,’’ Uniti said.

The base element will be paid in shares while the remainder could be a mix of shares and cash.

“The Fone Dynamics acquisition is forecast to be significantly earnings per share accretive to UWL shareholders in FY2020 and beyond,’’ Uniti said

“Based on the expected minimum base consideration, FY2020 EPS accretion will be approximately 30 per cent. In the event that the maximum Earn-Out was achieved, the FY2020 EPS accretion would increase to approximately 50 per cent.’’

Uniti chief executive Michael Simmons said it was a “fantastic transaction for shareholders.

“(It) will deliver sizeable and growing cash earnings, in a space with substantial scope for expansion, given Fone Dynamics has only a small fraction of the available market.

“Jordan and his team are proven deliverers, with remarkable year-on-year revenue growth since inception, whilst maintaining very respectable margins and high customer retention. “Jordan will become a member of my senior executive line-up, providing UWL with strong pedigree in business-to-business sales, a customer segment into which we are committed to grow.

“The Brisbane base of Fone Dynamics also provides us with a Queensland ‘beachhead’, enabling us to also better support and expand our fixed wireless and private fibre footprints in that part of the country.’’

Uniti shares were 4c higher at 58c.