Telco company, Spirit Telecom Ltd
(ASX:ST1), has acquired a business called Phone Names Marketing Pty Ltd for $4.2 million.
Phone Names owns and markets inbound 1300 and 1800 phone numbers, and owns over 2,200 phone names. For example, some of its customers are big brands in the food and electronic industries – using familiar phone numbers such as ‘1300 DOMINOS’, ‘1300 GO HARVEY’ and ‘1300 VODAFONE’.
Spirit says the acquisition will be funded via an equity capital raising of $2.25 million, as well as a proposed new debt facility worth $4.2 million.
The company also says the acquisition of Phone Names will add significant value because it provides unique phone numbers that are in high demand and will produce large cash earnings, with no capital expenditure needed to fund the business.
Spirit Telecom posted a net loss of $2.3 million at 30 June 2016.
