MyNetFone closes Symbio deal

DSL and VoIP provider MyNetFone (ASX:MNF) expects to double its net profit this financial year, after completing the acquisition of wholesale voice carrier Symbio networks

VoIP and DSL service provider MyNetFone (ASX:MNF) has completed the acquisition of wholesale voice carrier Symbio Networks.

The acquisition has created a combined entity with 85 employees, carrier networks in three countries, and established customers in 15, MyNetFone revealed in a statement.

The converged entity expects to earn a net profit of $2.1 million in net profit from around $41 million in revenue in FY12. This compares to profit of $1 million and revenue of $13.6 million in FY11.

Symbio Networks owns and operates voice interconnected networks in Australia, Singapore and New Zealand. Its Australian network carries around 1.5 billion minutes of billed voice per year, and is growing at 30 per cent per annum.

According to MyNetFone chief executive, Rene Sugo, Symbio also has direct interconnection with all Australia's major traditional carriers.

“[This] puts our new-generation services on a level playing field with telcos in terms of number porting and efficient call delivery,” he said.

Sugo added that the company aims to use Symbio's foreign presence as a springboard for further international growth.

When the deal was first announced in August, MyNetFone revealed it will pay an initial $2 million on completion, and that the acquisition price will be around four times Symbio's net earnings.

MNF shares grew 5.66 per cent in Friday's trading to $0.280 after the deal completion was announced. The shares have been trending upwards all year, having started 2012 at under $0.170.

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