Fone Zone swallows Next Byte

Fone Zone Group has broadened its Australian store presence after acquiring Apple retailer Next Byte.

The total purchase consideration will comprise of a $21 million cash payment funded from increased facilities with Fone Zone’s existing bank and the issue of 16.1 million ordinary shares.

Next Byte claims to be Australia’s largest specialist retailer of Apple and Apple-related products and services, with 17 locations across Australia including Adelaide, Sydney, Melbourne, Brisbane, Gold Coast, Perth and Hobart.

David McMahon, chief executive officer of Fone Zone, said: “The acquisition of Next Byte will broaden Fone Zone’s base of strategic partnerships and income streams, providing a significantly enhanced platform for future growth in the converging communications, computer and internet markets.”

McMahon said Fone Zone’s retail experience will be used to enhance Next Byte’s ability to execute a growth strategy.

“This is a significant milestone transaction for Fone Zone. It enables us to complement our strong product offerings and exclusive relationship with Telstra in the mobile phone market with an equally strong proposition in the field of cutting edge computers and consumer electronics,” he said.

According to McMahon, Fone Zone and Next Byte share similar strengths in solution selling through customer service and it is this similarity that will likely see Fone Zone stores extending their current product range to include selected Apple products.

The current owners of Next Byte have agreed to three year employment contracts to ensure the business continues on its growth path.