The equity raised would be used by Uniti to acquire 1300 Australia, fund managers were told.
1300 Australia owns the country’s largest inventory owner of phone words. These are phone numbers businesses can buy that spell a word at the end of a 1300, 1800 or 13 phone number.
Calvin Ng’s Aura Funds Management owned a 52 per cent stake in the business while a 30 per cent stake was held by Alfred Street Investment Partners, a consortium of fellow former and current Macquarie executives co-ordinated by Greg Mackay.
Interestingly, former Macquarie power brokers and founders of Point Capital Michael Carapiet and John Prendiville co-invested alongside Alfred Street Investment Partners in 1300 Australia.
Uniti has signed a binding agreement to acquire 100 per cent of the shares on issue, for an implied enterprise value of $78 million. This value implied an acquisition multiple of 6.5 times forecast financial year 2020 earnings.
The consideration comprised 75 per cent cash and 25 per cent Uniti shares.
1300 Australia generated $10.9 million EBITDA is the 2019 financial year and was forecast to hit $12 million in 2020, according to terms sent to funds.
Uniti has a market capitalisation of $461 million.