Conec2, the Melbourne-based telecommunications provider that took over ispONE in a controversial deal, now wants to take the combined entity public.
Conec2 took over the assets of the collapsed internet services provider in early September for $1.7 million - a deal which included ispONE’s 29 employees, 61,000 customers, fixed-line DSL, iBOSS billing platform, network assets, and several MVNO brands.
The deal was mired in controversy - ispONE had attempted to sell itself just prior to going into administration in August, but was forced to go out to tender. It later accepted the lowest of three offers it received.
Conec2 has now embarked on a marketing campaign to convince angel investors and venture capitalists to hand over up to $6 million in capital funding ahead of a planned initial public offering.
A slideshow presentation leaked to iTnews shows the company wants an “experienced funding partner” to provide working capital in order to achieve specific growth targets and eventually go public.
“Despite having been run successfully for almost 10 years, Conec2 is about to enter a phase of accelerated growth,” the package states.
“This presents investors with a rare opportunity to gain access to a business that is both mature, yet also in its infancy stages in relation to growth.”
Conec2 played up its customer base of 60,000 (acquired in the ispONE purchase) and said following a float, it expected to generate revenues of $15 million, $24 million and $39 million in the first three years.
It specified a float in either Australia, Hong Kong or Singapore, with a “current preference towards the Hong Kong market”.
Conec2 is understood to have made such presentations in at least two cities around the country to around a dozen potential investors, with no offers as yet made.
Former ispONE boss Zac Swindells is understood to be leading the presentations. Swindells was hired as a consultant for Conec2 to handle the migration of ispONE.
Neither Swindells nor Conec2 CEO Cameron Adams responded to requests for comment.
Push into SaaS
Conec2 is preparing to launch new software-as-a-service products, according to the presentation. This does not include the iBOSS billing platform it purchased from ispONE.
Alongside a Microsoft-based SaaS solution, it was also preparing a virtual desktop offering and managed services across backup, internet security, disaster recovery and quality of service.
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