Vonex signs multi-year agreement with telco giant Orange
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Vonex Limited (ASX:VN8) announced today that it has signed a multi-year wholesale agreement with Orange Business Services, the global enterprise division of the $26.2BN capped Orange Group (EPA: ORA).
Vonex is a full service, award-winning telecommunications service provider selling mobile, internet, traditional fixed lines, and hosted PBX and VoIP services - predominantly to the SME customer under the Vonex brand
The agreement, signed through wholly-owned subsidiary 2SG Wholesale, will see Vonex supply Orange with business-grade Mobile Broadband services throughout Australia.
This is the second major milestone for the company this week, following the completion of the Nextel acquisition, which gives Vonex additional revenue streams and brings new areas of expertise to the company, effectively expanding Vonex’s already impressive diversified product offering.
As we have previously reported, in fiscal 2020, Nextel generated EBITDA of approximately $450,000 on revenue of approximately $2 million, with infrastructure and specialised projects being a key driver.
Read: Vonex seals the deal on earnings accretive Nextel acquisition
Both the Nextel acquisition and the Orange agreement play into Vonex's commitment to continually improve user experience and deliver value for its SME and wholesale customers.
It is clear now that this focus, is translating to new customer wins.
Through the Orange agreement, Vonex plans to support the Australian launch of new products for Orange Business Services' enterprise customers.
With 3,000 multinational clients, Orange Business Services delivers enterprise connectivity to customers in a range of industries such as automotive, mining, oil & gas and public sectors, including Internet of Things (IoT) connectivity for transport, logistics and smart cities.
“We are delighted to partner with Orange to support Orange Business Services’ expansion plans in Australia,” Vonex MD Matt Fahey said.
“Signing this agreement is testament to the growth and maturity of our offer to small, medium and enterprise customers, as we are seeing strong growth across both existing and newly-launched products.”
For Orange, the agreement is a step forward in providing Australian businesses the best in digital services.
“With this agreement, Orange will offer enterprises the ability to combine NBN connectivity with wireless broadband services through one provider only. This will bring great simplicity as well as strong; fast and stable connection which were once reserved for MPLS and largest companies,” Kevin Griffen, Orange Managing Director, Australasia said.
"With this agreement, enterprises can reap the benefits of SD-WAN, NBN ubiquity, and business grade mobile broadband - providing a resilient networking platform on which to drive their digitalisation programs.”
Agreement Terms
The Agreement between Vonex and Orange Business Services is for an initial term of three years. The Agreement shall automatically renew for successive periods of 12 months thereafter unless either party provides notice of its intention not to renew the Agreement by giving not less than 6 months’ notice prior to the expiry of the current term. There is no exclusivity binding the Parties to the Agreement.
Benefit to Business and Revenue
The Agreement is to supply Orange Business Services with business-grade mobile broadband services throughout Australia. The addition of Orange Business Services brings the number of 2SG Wholesale customers who purchase mobile broadband services to 82 in total. There are no minimum purchase orders pursuant to the Agreement, as such Vonex is unable to provide guidance on the potential contribution to the Company’s revenue.
Could Vonex be 2021’s dark horse?
Vonex is a full service, award-winning telecommunications service provider selling mobile, internet, traditional fixed lines, and hosted PBX and VoIP services - predominately to SM customers under the Vonex brand.
It has been around for some time now, however seems to have flown under investors’ radars.
When you look at peer valuations, Vonex could be one to watch this year as it continues a seemingly aggressive approach to build on its already solid foundations through acquisitions such as 2SG and Nextel and agreements such as the one with Orange.
- Spirit Telecom (ASX: ST1): $216M
- Over The Wire Holdings (ASX: OTW): $225 and ...
- Uniti Group (ASX: UWL): $1.24BN - yes, now valued at over $1BN.
All are trading at many multiples of VN8, currently at $42M.
Read: VN8’s Latest Acquisition Boosts Group ARR to Over $18M
The Nextel acquisition increased the company’s annualised recurring revenue (ARR), with group ARR increasing to more than $18 million.
This gives it a strong revenue profile for 2021.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
