Amaysim acquires Australian MVNO Jeenee for AUD 7.8 million
According to Amaysim, the terms of its revitalised network supply agreement (NSA) with Optus will apply to all acquired subscribers, “delivering strong cost synergies”. Under amaysim’s operating structure and NSA the acquisition is expected to deliver positive operating leverage and be earnings accretive. Amaysim expects the acquisition to deliver earnings upside in FY21 (the first full year post acquisition) and beyond.
Jeenee’s postpaid plans are offered on a month-to-month or lock-in contract basis. The addition of Jeenee’s mobile subscribers, brings the amaysim Group’s total recurring mobile subscriber base to 698,600. Including As You Go (AYG) subscribers, the total amaysim subscriber base tops 1.03 million. AYG subscribers generate approximately 5 percent of amaysim’s total mobile revenue.
Amaysim has also introduced a migration plan for Jeenee’s subscribers. Under this plan, the Jeenee brand and systems will be retired over the next six months. The amaysim Group’s existing brands, systems and processes will be leveraged to realize synergies and drive earnings.
Amaysim had a cash balance of AUD 30.7 million at 30 June 2019 and has also obtained commitments from its syndicate banks to increase its senior debt facilities by AUD 14 million to support the Jeenee purchase and future acquisitions.
Amaysim also reports it is exploring a number of other bolt-on acquisitions in the mobile market that can be readily integrated into the amaysim Group to deliver strategic value and cost synergies by leveraging existing systems, processes and the revitalised NSA.
Amaysim also says the Jeenee acquisition will not have a material impact on its earnings in FY20. It is expected to deliver a solid earnings contribution in FY21 (the first full year post acquisition) and beyond.
Gloss