The online mobile service provider Amaysim Australia Ltd has agreed to purchase Australian Broadband Services to enter the broadband market next year. Although the company is expanding, customers can still expect broadband service provided at a low price, just like its mobile offering.
The company will pay $4 million in cash. They also agreed to a maximum earn-out of $5.45 million, which can be paid in Amaysim shares or cash depending on customer growth or increase in profit up to three years.
“Acquiring AusBBS’ technology platform is a great way for us to accelerate our broadband strategy, become even more relevant in data-hungry Australian households and bring our ‘less hassles’ approach to broadband,” said Amaysim CEO Julian Ogrin. “Rob Appel and his team are true Australian entrepreneurs and innovators who share our disruptive vision, agile culture and technology-driven approach to entering new markets…we will build Amaysim broadband which will extend our relationship with current customers while increasing the potential addressable market for the Amaysim brand.”
The Australian reports that Rob Appel, CEO and a major shareholder of AusBBS, as well as his team, has been focused on creating a flexible and accessible platform for providing broadband services using fiber for the past four years. Their cloud-based approach guarantees that the business can adapt to new opportunities as quickly as possible.
Appel adds that working with Amaysim is the logical step into the growing NBN market. The AusBBS CEO hopes that the move will allow them to become a leader in the industry.
With Amaysim’s fixed broadband and other new products, the company is expected to acquire 3.7 million Australians on lapsed mobile contracts. Currently, Amaysim does not provide lengthy contracts with its SIM-only mobile and data plans. The company will soon compete with Telstra, Optus and TPG Telecom, the biggest players in the fixed broadband market in Australia.