My Net Fone, an ASX-listed provider of hosted voice and data communications services, has agreed to buy Spark New Zealand's international voice business for $22.4 million.
The company said in a statement to the ASX that the business will add A$90 million to A$100 million in annual revenue from wholesale voice trading and generate pretax earnings of about A$3.5 million in its first year, before potential synergies and savings.
It expects to complete the purchase by the end of April, apart from the US assets, which require government approvals.
Spark will retain its international data business.
The sale was part of Spark's strategy to focus primarily on its New Zealand operations.
My Net Fone said the acquisition will give it a "carrier grade global voice network" spanning four continents, specialist staff, custom-built international voice trading systems, over 220 international carrier relationships and interconnect agreements and the Telecom New Zealand International brand.
The purchase will give it an incremental 2.8 billion minutes a year, and a global wholesale customer base of 220.
It also will have a three-year contract with Spark to provide international minutes which it says is worth about A$10 million a year in sales.
The Australian company described the deal "as a huge step up" that will transform it "into a significant player in the global market."
My Net Fone will initially fund the transaction via an A$25 million bank facility.
Its shares last traded on the ASX at A$3.01 and have gained 44 per cent in the past 12 months.
Spark rose 0.7 per cent to $3.09 and has advanced 26 percent in the past year.