MVNO Amaysim acquires OVO Mobile for $15.8 million

123
MVNO Amaysim acquires OVO | iTMunch

Australian Mobile Virtual Network Operator (MVNO) Amaysim has acquired its competitor OVO Mobile for $15.8 million. As a part of the acquisition, Amaysim also bought Aussie telecom provider OVO Mobile’s customer base of 77,000. This addition pushes Amaysim’s subscriber base to 1.17 million in Australia. 

74,000 of OVO’s customer base acquired are recurring subscribers. The acquisition is a part of Amaysim’s goal to expand its recurring subscriber base, which is now at 820,000.

What does it mean for the existing OVO users?

The transition from OVO to Amaysim should be a seamless process. As both MVNO providers, OVO and Amaysim, operate under the network of Optus, little to no service interruptions or disruption should be faced by the existing customers.

There is one major difference between Amaysim and OVO MVNO plans. Amaysim sells its plans on a 28-day recharge basis and OVO sold its plans on a 30-day recharge basis. The company says that OVO customers will get to keep their 30-day recharge at the time of migration to Amaysim. It may also allow Amaysim customers to swap to 30-day recharges later. OVO customers will keep receiving services of a plan of equal, or better, value for their existing plan. He added that most subscribers will also receive increased inclusions.

Chief Executive of OVO, Matt Jones said that Amaysim has a reputation for delivering excellent customer service and he is confident that all the OVO customers will be supported and well looked after as they join Amaysim’s network.

SEE ALSO: Mobile tower in Australia vandalized, a possible 5G conspiracy?

MVNO Amaysim’s acquisition trail

The first Australian mobile virtual network operator that Amaysim acquired was Vaya. Its subscriber base of 140,000 was purchased by Amaysim in June 2016 for $70 million. Last year in December, the company also acquired Sydney-based Jeenee Mobile and its 41,700 recurring customer base for $7.8 million.

Chief Executive of Amaysim, Peter O’Connell, said that having successfully implemented the integration of Jeenee Mobile in less than 3 months, they now have the skills and experience to execute an efficient and successful migration. He added that they are looking forward to welcoming OVO customers to the Amaysim family. 

The company said that it would migrate OVO Mobile subscribers on its network supply deal with Optus. This process is expected to take not more than 4 months. 

O’Connell said that he is pleased with how their business has performed in the 2nd half of the financial year despite the challenges the world is facing currently. He is delighted to be able to say that they are on track to achieve their FY2020 goals. The telecom company says that it is expecting to report earnings before interest, taxes, depreciation and amortisation (EBITDA) between $33 million to $39 million.

SEE ALSO: Aussie Broadband signs up about 2,300 users for its gigabit NBN plan

For more updates and latest tech news, keep reading iTMunch

Spread the love