VN8 to benefit as Voiteck delivers performance milestone

Yesterday, our small cap telco investment Vonex (ASX: VN8) announced its additional payment for its Voiteck acquisition on the back of financial improvement milestones being delivered.

Overall, we are pleased that VN8 was able to bring Voitek into the fold so quickly - and we expect that this will contribute to VN8’s improving financial performance in the coming quarters.

Voiteck is a South Australian telco that VN8 acquired earlier this year for a total initial consideration of $2.75M, enabling it to fast-track expansion into that state.

With integration completed, synergies between the entities have helped Voiteck reduce supply costs (through upgrading ISDN to VoIP technology) and hosting costs for its tech stack.

This has triggered the performance milestone, with VN8 to issue 1,208,743 new shares and pay $525,206 to the Voiteck vendors.

While this is dilutive and reduces VN8’s cash balance, we like that this is due to the acquisition delivering substantially to VN8s bottom and top line. As such, we see this as a good example of VN8’s ‘growth by acquisition’ strategy playing out.

What’s next?

Next up, we’re keen to see integration progress of VN8’s latest acquisition, OnTheNet, as well as customer growth and earnings figures for the half year.