Junior mobile provider Amaysim has moved closer to entering Australia's crowded fixed broadband market next year by agreeing to buy Australian Broadband Services.
The company - which describes itself as a disrupter of the traditional mobile market, dominated by Telstra and Optus - wants to exploit the rollout of the national broadband network.
"It is logical for Amaysim to enter the broadband market in the next 12 months to take advantage of the likely customer switching behaviour that will stem from the continued NBN rollout," chief executive Julian Ogrin said on Tuesday.
Buying AusBBS' technology platform was a great way for the company to fast track its broadband strategy, he said.
"AusBBS stood out for us due to its unique mix of scalable and proven technology and a passionate team, who will now join amaysim to grow this business with us."
AusBBS chief executive and major shareholder Rob Appel said that since the company's launch in 2012, management had focused on creating the most flexible, scalable and efficient platform possible to deliver broadband services in the context of the migration to fibre networks in Australia.
"Our cloud-based approach ensures that the business can adapt to new opportunities quickly," Mr Appel said.
News of the deal helped boost Amaysim's share price by four per cent, or 7.5 cents, to $1.93 in a flat market at 1136 AEST.
Under the terms of deal, Amaysim will pay $1 million in cash and $1.5 million in Amaysim shares on completion of the deal. Plus, a further $1.5 million in Amasyim shares one year later, subject to certain conditions.
The parties have also agreed to a maximum earn-out of $5.45 million payable in cash and Amaysim shares.
Amaysim currently offers SIM-only mobile and data plans, with no lengthy contracts.
Within Australia's fixed broadband market, Telstra, Optus and TPG Telecom are the main players.
Mr Ogrin told AAP in June that the company was looking to add customers by targeting the 3.7 million Australians on lapsed mobile contracts with new products, including fixed broadband.
Amaysim was preparing to launch a fixed broadband offering in the next 12 months as its executives consider possible wholesale partners, technology options and launch plans, he said, noting that the NBN rollout offers big opportunities for the sector.
