PERTH: United Networks Limited (UNL) has acquired Red Telecom Pty Ltd Business, a telecommunications service provider, increasing its recurring revenue and completing its 6th acquisition in 11 months.
Benefits of the Acquisition:
●Increases annualised recurring revenue by $1.4M
●Increases average GP across all services in the business
●Streamlines operational efficiencies from the increase in scale
●Transaction is double digit earnings accretive increasing shareholder value Red Telecom Business
●The business provides Voice and Data services to 500 small to medium businesses across Australia
●Annualised recurring revenue of $1.4M
●The gross price paid for the business represents a multiple of 1.6 times expected EBIT of the business before synergies
●The purchase price is $0.5M which will be paid in cash funded from UNL’s cash reserves
●The acquisition represents 17% growth on the FY20 reported EBITDA.
UNL CEO Victor Tsaccounis said, “This is the 2nd successful acquisition completed in FY21 and the 6th since October 2019. Our focus remains on aggressively increasing the recurring revenue of the business. We are excited by the cross selling opportunities that these acquisitions will open up for the business to grow our revenues further.”
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