Gearing Up For iPhone?

Written by Adam Gosling

Friday, 24 August 2007

As Europe awaits the release of its first Apple iPhone, Australia's access to this much-hyped mobile phone seems and eternity away, but the management of ASX-listed Fone Zone Group is positioning itself to play a role in the product's launch when it finally does happen. The company has announced it has entered into a deal to acquire Next Byte, Australia's largest specialist Apple retailer for a mix of cash and shares. The total purchase prise will comprise A$21 million in cash and 16.1 million ordinary shares. That gives the previous owners of the Apple retailer a 12.86% share of the new entity. The current owners of Next Byte have agreed to three year employment contracts to ensure the business continues on its growth path. Based on Fone Zone's 30 day Volume Weighted Average Price (VWAP) of 62 cents, the purchase consideration represents a multiple of approximately five times Next Byte's FY2007 normalised EBIT of $6.3 million, which was achieved on revenues of $105 million. Fone Zone Chief Executive Officer, David McMahon, said Next Byte represented an excellent strategic acquisition for the Fone Zone group. "The acquisition of Next Byte will broaden Fone Zone's base of strategic partnerships and income streams, providing a significantly enhanced platform for future growth in the converging communications, computer andInternet markets." "This is a significant milestone transaction for Fone Zone. It enables us to complement our strong product offerings and exclusive relationship with Telstra in the mobile phone market with an equally strong proposition in the field of cutting edge computers and consumer electronics." Next Byte has a proven track record of growth and has been able to deliver consistently strong financial results while continuing to enhance its own market position through organic growth and strategic acquisitions. "With 17 Next Byte stores around Australia, there is an exciting opportunity for additional growth and Fone Zone's specialist retail experience will clearly enhance Next Byte's ability to execute this strategy," McMahon said. Fone Zone will extend its current product range to include selected Apple products including iPods and notebooks, while the 17 Next Byte stores will be retained and allowed to trading independently. In media reports McMahon said Apple is keen to support the move.The acquisition is expected to be completed in September and products will appear in stores before Christmas. Related news items Tiny Rugged UMPC WIth Vista -10/10/2007 Consumers Want FMC: Companies Don't See The Benefit -02/10/2007 Nokia Buys Map Company For US$8 Billion -02/10/2007 Seven In Unwired Takeover Bid -26/09/2007 Ringtone Service Wins Creativity Award -26/09/2007 Newer news items Regular Mobile Numbers Ported To Satellite Service -18/03/2008 Crazy John's Plans 20 New Stores -11/03/2008 New Satellite Broadband Begins -15/01/2008 Telarus Selects BigAir For Sydney -25/10/2007 Voda Goes In-Store At Myer -26/08/2007 Older news items Mobile Solutions Groups Consolidate -14/08/2007 Vodafone Expands Brightpoint Relationship -06/08/2007 Crazy John's To Sell People's Fixed Services -11/07/2007 Intel Makes Good On Whitebook Promise -30/04/2007 BigAir Hopes To Ramp Wireless Sales -30/08/2006 Tag This Now: