TELECOMMUNICATIONS

Our small cap telco investment Vonex (ASX:VN8) has been on an acquisition shopping spree, gobbling up 3 other telcos over the past 18 months. VN8’s acquisition strategy is a simple one that can be very effective in capturing market share and accelerating growth.

Today, VN8 provided an update on the integration of its latest and largest acquisition — the $31M Direct Business purchased from MNF Group, the integration is progressing well as the companies combine into one - and the growth announced today is impressive.

Today Vonex Ltd (ASX: VN8) announced the successful integration of its last acquisition, hitting 45,000 PBX users and growth of SME customers and whitelabel offerings.

When we introduced award-winning telecommunications service provider Vonex Ltd (ASX:VN8) as our latest portfolio addition, it was on the back of an impressive and growing Annual Recurring Revenue (ARR) base. Today, Vonex announced its ARR will continue to grow via the acquisition of telecommunications Nextel justifying our position in the company.

Recurring revenue, facilitated by the acquisition of 2SG, has provided Vonex with forward earnings predictability. The 2SG acquisition cannot be underestimated, having provided Vonex (ASX: VN8) with substantial sales momentum.

After following the story for a while, and having familiarised ourselves with management and the company, we have decided to take a long-term position in Vonex (ASX: VN8).

Vonex (ASX: VN8) demonstrated an 88% increase in annualised recurring revenue during fiscal 2020 to $16.4 million. The acquisition of 2SG has also been one of the company’s key achievements.

PAC Partners analyst Mark Yarwood ran the ruler across Vonex (ASX: VN8) recently, attributing a 12-month target price of 20 cents per share to the stock, implying upside of 100%.

MGM Wireless' (ASX:MWR) SPACETALK, the most secure smartwatch for children on the market today. Impressively, the same designers who brought the world the Apple Watch were advisors to SPACETALK.

Vonex (ASX:VN8) has launched its partnership as VoIP and Hosted Phone System telco provider to Australia’s largest business-to-business loyalty program, Qantas Business Rewards (QBR).

ASX tech junior, Vonex Ltd (ASX:VN8) is developing a world-first means of seamlessly linking voice calls and messages across multiple platforms and devices.