Sunday , October 22 2017

Amaysim has acquired Vaya Mobile for $70M

amaysim_SIM_card-300x239

Mobile Virtual Network Operator Amaysim has announced that it has purchased fellow operator, Vaya Mobile, for $70 million in a deal which will help grow Australia’s fourth biggest mobile phone provider by 140,000 subscribers. This acquisition will take Amaysim to over 1 million subscribers to its service by 2019.

Amaysim’s CEO Julian Ogrin says the deal will “significantly improve Amaysim’s milestone targets,” whilst at the same time “(accelerating) our growth strategy, it’s a strong strategic set-up, it compliments our existing business.”

Ogrin has stated that he sees the company playing a role further down the line in possible other mergers and acquisitions along with consolidation within the Telecommunications industry.

The company has stated that it will continue to run the Vaya Mobile brand separately to the Amaysim brand, having Vaya become a wholly owned subsidiary of Amaysim – sort of like what is the current practise with Virgin Mobile and Optus.

Both companies utilise the Optus 2G, 3/3.5G and 4G plus networks with Ogrin stating that “We’ve got a very strong relationship with Optus and we think if one of these opportunities [crops up again], absolutely we’ll be happy to look at it, as long as it’s a strategic fit to our organic growth strategy.”

Vaya has 40 employees, with 10 based in Australia and another 30 in the Philippines and these employees are expected to stay on through the change of ownership.

 
Source: Amaysim - ASX announcement (1 Jan 2016).
Via: Sydney Morning Herald (SMH).

Alex Dennis   Journalist

By day, Alex works within the Industrial Relations field/occupation but by night and in his spare down time he searches the net for anything and everything relating to Android and Chrome related products and news.

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6 Comments on "Amaysim has acquired Vaya Mobile for $70M"

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Brad Hook
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Brad Hook

How on earth is Vaya with 140,000 subscribers worth $70M? Ex-owners would be cheering.

chris
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chris

Well they were cheap. I had no issues with them and billing was fine. 18 a month for more than I could use only issue was on Optus. That is how they can have 140,000 subscribers.

You don’t need a lot of employees to run this type of business. a cheap call centre, local escalation people and a few managing the thing, you are reselling an Optus service so you get a set price per connection, work out your margin and sign them up.

Nathan Reed
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Nathan Reed

I think you misunderstood Brad’s question Chris. He was asking about the valuation / amount paid given there’s only 140,000 subscribers i.e. they’ve paid $500 per subscriber which seems a lot when monthly revenue per customer is under $30 a month.

Member

Amaysim paid $5 million in cash, $15 million in Amaysim shares and takes on $50 million of debt owed to Optus. How Vaya had 140 000 customers is beyond me, as they have some of the dodgiest billing practices ever seen.

Cameron
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Cameron

Wow a company with only 40 employees is worth 70 mill. Wouldn’t have guessed….

vijay alapati
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vijay alapati

out of those 40 members 30 are located in Philippines which likely means those 30 members are call center people.

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