Australian telecommunications provider MNF Group (ASX:MNF) has entered into an agreement to acquire Singapore-based Superinternet Group for S$2 million.
Superinternet Group, the parent company of internet services provider Superinternet Access, is a licensed independent facilities based operator (FBO) in Singapore.
The acquisition is expected to be completed before 31 July, following customary regulatory approval.
According to MNF, SuperInternet is a niche operator generating around S$1.6 million in revenue and is currently EBITDA (earnings before interest, tax, depreciation and amortisation) break even.
MNF Group plans to upgrade the existing network infrastructure with its software eco-system, enabling the full suite of MNF wholesale, enterprise and government products to be delivered domestically and globally.
Superinternet currently employs 10 staff all based in its Singapore office.
Through the acquisition, MNF Group will have access to a Singapore domestic fully interconnected voice network infrastructure.
Superinternet will also allow for a full national interconnection with NetLinkTrust, the Singapore NBN fibre wholesale company, while also providing access to an extensive domestic dark fibre transmission within the Singapore CBD.
“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," MNF Group CEO Rene Sugo said.
"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."
MNF Group operates a point of presence in Singapore for the TNZI (Telecom New Zealand) operation, acquired in April 2015 for NZ$22.4 million.
"This acquisition provides the group with additional capabilities to address the Singapore market, which will provide increased sales potential with existing and new wholesale customers," the company announced to shareholders on 21 June.
MNF will also continue to invest in the enterprise and government sector in Singapore and deploy additional product capabilities into the market.
In February, MNF advised shareholders that it expected its PennyTel brand to impact its group pre-tax earnings (EBITDA) by $3.5 million in the full 2018 financial year.
According to MNF Group, which owns MyNetFone, PennyTel and Symbio Networks among others, the $3.5 million hit from its PennyTel subsidiary includes $500,000 of costs incurred as part of the launch of the PennyTel MVNO (mobile virtual network operator) on the Telstra network, announced 30 January.