Australia's Eftel to acquire Engin
Eftel, a competitive Australian ISP, on Monday reached a deal to acquire VoIP provider Engin for AUD 9.1 million (USD 9.5 million).
Under the terms of the agreement, Eftel will acquire all of Engin's assets, including its customer contracts and VoIP intellectual property.
Engin, according to a press release announcing the deal, reported AUD 20 million (USD 20.8 million) in FY12 revenues via the sales of VoIP services to a mix of consumer, business and wholesale customers.
In addition to VoIP, which it currently provides to 85,000 customers, Engin provides ADSL and traditional wireline voice service.
Scott Stavretis, Eftel's CEO, said acquiring Engin provides a number of cost benefits and an entrée to deliver IP-based services over Australia's National Broadband Network (NBN).
"As the National Broadband Network (NBN) rolls out across the county, VoIP will be the solution used to deliver traditional fixed line voice calls," he said. "The VoIP scale and experience acquired under this transaction will greatly assist the Eftel business as the industry undergoes this technology change."
Eftel's acquisition of Engin is timely when competition for VoIP is heating up in Australia. A notable development was made last week by Australian incumbent provider Telstra, who announced they would extend its VoIP offering from businesses to consumers.
- see the release (pdf)