J2 Global snaps up more Zintel assets, agrees to buy NZ unit
BUSINESSDESK: J2 Global, the Nasdaq-listed, cloud-based communications and messaging company, has added to its acquisition of assets from Zintel Group, agreeing to buy its Zintel Communications unit for $7.3 million.
The deal closes today after NZAX-listed Zintel gained NZX exemption from requirements to make a pre-break announcement or gain shareholder approval for the transaction.
In February, Delaware-based j2 Global acquired Zintel's Australian toll-free calling business for $15.3 million.
"Following the sale of our Australian business to j2 earlier this year, they are the natural home for the NZ business which also manages telecommunication services," Zintel chairman Nick Gordon says.
"We have previously indicated the possibility of further divestment and this now leaves us with one trading subsidiary, Commit Services Ltd."
Shares of Zintel have soared 265% this year, with most of the gain coming since the company first disclosed j2's interest in its assets with an offer for the Australian unit worth more than its entire market capitalisation at the time.
The recently traded at 42 cents, valuing the company at $18.8 million.
The company's Zintel Payments unit, which is not currently trading, is in the process of filing an action in the Supreme Court of New South Wales against VeriFone, which had terminated Zintel's exclusive distribution agreement for Eftpos terminals.
J2 shares fell about 1% to US$28.92 in the US and have gained 21% in the past three months.