Amaysim acquires OVO Mobile for $15.8 million

Mobile virtual network operator (MVNO) Amaysim has acquired competitor OVO Mobile and its customer base for $15.8 million.

As part of the deal, Amaysim acquired some 77,000 new mobile subscribers, 74,000 of which are recurring subscribers, to push its total subscriber base to more than 1 million across Australia.

Like Amaysim, OVO Mobile operates on Optus’ network and claims to be the largest independently owned asset-light Aussie MVNO behind Amaysim. The company offers prepaid plans offered on a month-to-month and no lock-in contract basis.

Amaysim chief executive Peter O’Connell said the acquisition is part of the company’s goal to increase its recurring mobile subscriber base, which is now at 820,000.

“Under our asset-light operating structure, we are able to scale the subscriber base with no, or nominal, additional resources, delivering positive future earnings from the acquired base,” he said.

The acquisition comes six months after Amaysim acquired Sydney-based Jeenee Mobile and its 41,700 recurring mobile subscribers for $7.8 million in December 2019.

“Having completed the integration of Jeenee Mobile in less than three months, we have the skills and experience to accomplish an efficient and successful migration and we look forward to welcoming OVO customers to the amaysim family,” O
Connell added.

“We have been pleased with how our business has performed in the second half of the financial year, despite the current challenges facing the economy, and we’re delighted to be able to report that we are on track to achieve our FY2020 underlying EBITDA guidance.”

OVO chief executive Matt Jones said Amaysim has “a reputation for delivering excellent customer service and value” and is confident that OVO customers will be “well looked after and supported” as they join the Amaysim umbrella.

“I would like to thank the OVO team for their hard work over the years in building the business and amaysim for their support,” Jones said.

“The completion of this transaction will enable us to focus on our AI Business, Sourse, and associated content platform.”