Australian alternative internet service provider (ISP) Eftel has announced that it has struck a deal to acquire Engin, which established Australia’s first commercial voice-over-internet protocol (VoIP) offering back in 2004, in a deal valued at AUD9.1 million (USD9.5 million). Confirming the purchase, Eftel noted that it will buy the entire Engin business, including customer contracts and intellectual property.
Alongside its VoIP products – to which more than 85,000 customers are currently signed up – Engin currently offers services including ADSL and fixed telephony, and reportedly generated revenues of AUD20 million in FY 2012.
Commenting on the deal, Eftel CEO Scott Stavretis noted: ‘Over the last twelve months we have established an operation that can deliver large cost advantages from acquired businesses. Due to that foundation we are able to extract significant earnings from this acquisition, extracting additional value from the increase in revenue that Engin brings into Eftel.’ Further, the executive noted the technical benefits that are expected to be gained from the acquisition, with Mr Stavretis adding: ‘As the National Broadband Network (NBN) rolls out across the county, VoIP will be the solution used to deliver traditional fixed line voice calls. The VoIP scale and experience acquired under this transaction will greatly assist the Eftel business as the industry undergoes this technology change.’