Aggregato buys Tel.Pacific for $19 million
- 25 March, 2014 11:34
Aggregato has acquired Tel.Pacific’s prepaid international calling assets in a move that will see it become the country’s largest supplier of calling card services.
The Sydney-based international telecommunications provider has customers in Australia and New Zealand as well as the US. Since formation in 2102, Aggregato has completed three acquisitions; Access International, Australian Telecom and Krush. Tel.Pacific is the fourth and largest to date.
The company paid $19 million for a prepaid two-stage international calling customer base of approximately 400,000, generating in excess of $50 million in annual revenues, according to Aggregato.
The telco also acquired all associated operating systems and relevant intellectual property, including established Tel.Pacific brands.
Aggregato boasts combined annual revenues totaling over $100 million, 75 per cent of this is said to be generated locally.
Aggregato chief executive officer and managing director, Ilario Faenza, said the transaction means the company now assumes a position of considerable scale and distribution reach in the Australian market.
“The company is now generating growing returns to shareholders, and we expect this latest acquisition to materially bolster earnings and free cash flow, to enable us to drive forward with our ambitious growth plans."
One of Aggregato’s founding shareholders, M2 group, has announced it will convert into equity a $5.5 million loan provided in September 2013. The conversion of the debt facilitated the acquisition of Tel.Pacific assets by Aggregato.