In an all-cash transaction, Swoop has sold its wholesale voice segment to mobile communications provider Pivotel.
Located in Gold Coast, Pivotel will spend $9 million to acquire Swoop’s Voicehub Group and Harbourtel, which are the entities responsible for managing its voice call termination operations.
The acquisition of the voice business is expected to enhance Pivotel’s wholesale voice and messaging services, according to Pivotel CEO Peter Bolger who stated in a press release.
Stating, “With the increasing demand for cloud-based services, it’s crucial to offer top-notch voice and messaging origination and termination services,” Bolger emphasized the importance of Voicehub’s expertise in the wholesale voice industry to aid Pivotel in creating innovative solutions for the evolving unified communications market.
As part of the takeover, Swoop has signed a five-year agreement with Pivotel to sustain its existing wholesale rates and cost structure.
With the acquisition, it was mentioned by Pivotel to iTnews that four employees from Swoop will transition to Pivotel, further stating that “various wholesale carriage service provider customers” will join the acquisition deal.
Initially, Swoop acquired Voicehub in October 2021 for $6 million.
However, after observing only “some growth” from its voice division, the fixed wireless and wholesale network provider, Swoop, has decided to shift its focus towards its “core markets and clients.”
CEO Alex West of Swoop informed shareholders [pdf] that, “As we conclude FY24, significant organic growth is evident in our core residential and SMB-focused business units in key products like fixed wireless broadband, mobile, and voice.”
Swoop elaborated that the transaction will grant them “enhanced financial flexibility” and position the company in a “stronger cash flow position within their core operations for FY25.”
The complete acquisition process is anticipated to finalize by July 1.
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