The MNF group is ready to finalize the partial sale of Direct Business to Vonex


MNF’s direct business sells cloud, internet and mobile telephony services directly to SMEs and residential customers in Australia, as well as dedicated audio and video conferencing businesses.

() has entered into a binding agreement with () for the partial sale of its direct business for $ 31 million.

All the conditions of the conditional terms sheet signed with Vonex on June 27, 2021 have been fulfilled, including detailed due diligence with the conclusion of the binding agreement scheduled for early August.

The sale of MNF’s direct activities is in line with its strategy to simplify the business and grow its CPaas and UCaas voice services.

Winning Guide

Proceeds from the sale will be reinvested in growing wholesale business and overseas expansion.

The company also reaffirmed its profit guidance for fiscal 2021, which is expected to be in the upper half of the expected range of $ 40.0 million to $ 43.0 million of EBITDA.

Transaction details

The $ 31 million sale agreement includes $ 20 million in cash payable on completion and $ 11 million in deferred cash payable in monthly installments over 12 months.

Vonex has secured a $ 16 million credit facility from Longreach Credit Investors, which will be fully utilized to partially fund the initial consideration for the acquisition.

On top of that, Vonex is also raising up to $ 12 million via a two-tranche offering, by issuing 109 million shares at 11 cents per share, and will offer a stock purchase plan (SPP ) to existing eligible shareholders to raise up to an additional $ 2 million.

Strategic rationale

MNF’s direct business sells cloud, internet and mobile telephony services directly to SMEs and residential customers in Australia, as well as dedicated audio and video conferencing businesses.

This proposed transaction will significantly expand Vonex’s presence with small to medium-sized and residential customers across Australia and will see the company migrate approximately 5,250 new commercial customers to its platform.

“Financial scale and market relevance”

Vonex Managing Director Matt Fahey said: “Our acquisition of a portion of MNF Group’s direct business will transform Vonex by providing it with financial scale and market relevance.

“Through this agreement, we welcome a new, highly experienced team of 30 employees, over 5,000 new SMB customers and over 180 new channel partners to our platform, and we expect to nearly double Vonex’s annualized recurring revenue. on an annual basis. .


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