MNF Group Ltd (ASX:MNF) has entered into an agreement to acquire the SuperInternet Group in Singapore for SGD$2.0 million.
The SuperInternet business is a niche operator generating around SGD$1.6 million in revenue and is currently EBITDA break even.
It operates from headquarters in Singapore with a dedicated team of 10 full-time equivalent staff.
Facilitates entry into complex Singapore market
MNF’s CEO Rene Sugo said: “The acquisition of SuperInternet in Singapore provides MNF a rapid entry into the complex Singapore market and is part of MNF’s regional expansion strategy into Asia.
“This will allow the company to replicate its highly successful Australian and New Zealand based next-generation high margin recurring revenues in this additional market for consistent long-term growth and innovation potential.”
The business is Singaporean Government certified, with potential for new revenues in the near future.
Voice, fibre and specialist staff
The acquisition of SuperInternet consists of:
• A Singapore domestic fully interconnected voice network infrastructure;
• Full national interconnection with NetLinkTrust, Singapore’s NBN fiber wholesale company;
• Extensive domestic dark fibre transmission within the Singapore CBD; and
• Specialist staff with extensive experience in marketing, sales and operations in the Singapore market.
MNF has also re-affirmed its current organic earnings guidance for FY18.
It noted that the organic MNF business is performing well and MNF Group is expecting to earn $25.0 million EBITDA and $12.5 million NPAT in FY18.