Hansen Technologies Announces £33.1 Million Acquisition of Digitalk

Hansen Technologies Limited (ASX: HSN) has announced a binding agreement to acquire Digitalk Group Holdings Ltd for £33.1 million. The Hansen Technologies Digitalk acquisition is a key development aimed at expanding the company’s presence in the Mobile Virtual Network Operator (MVNO) market. The deal, expected to close by the end of 2025, involves acquiring 100% of the profitable UK-based platform provider, which serves approximately 150 customers across more than 30 countries.

The acquisition adds immediate value, with Digitalk’s £10.5 million in annual revenue (over 90% recurring) and £3.3 million in Cash EBITDA. This represents a 10x enterprise value multiple that is expected to deliver immediate earnings accretion for Hansen shareholders. This transaction aligns with Hansen’s objective to expand its leadership in the global communications and media industry.

What is the Financial Impact of the Digitalk Acquisition?

The transaction delivers an immediate financial impact through multiple channels. With an enterprise value of £33.1 million (approximately A$66.4 million), the deal will be funded through a combination of existing cash reserves and debt financing, allowing Hansen to maintain financial flexibility whilst pursuing growth opportunities.

Key Financial Metrics:

• Annual Revenue Addition: £10.5 million (over 90% recurring SaaS model)
• Profitability Contribution: £3.3 million Cash EBITDA
• Acquisition Multiple: 10x enterprise value to Cash EBITDA
• Customer Base: Approximately 150 customers across more than 30 countries
• Staff Integration: Approximately 60 specialised employees

The structure of the deal is designed to provide immediate earnings accretion to Adjusted Earnings Per Share (EPSa), supported by Digitalk’s strong recurring revenue profile and established profitability. According to CEO Andrew Hansen, “Digitalk is a highly complementary acquisition for Hansen – technologically, commercially, and culturally. It expands our recurring revenue base and provides new growth avenues in MVNOs and wholesale voice.”

For the financial year ending June 2025 (FY25), Digitalk reported unaudited revenue of approximately £10.5 million with Cash EBITDA of £3.3 million, excluding capitalised development costs. This historically profitable and cash-generative business model provides a solid foundation for integration.

How does the MVNO Platform Enhance Hansen’s Technology Portfolio?

The Hansen Technologies Digitalk acquisition gives Hansen ownership of established MVNO software that complements the company’s existing Global Communications Suite. A Mobile Virtual Network Operator (MVNO) is a wireless communications services provider that leases network capacity from traditional mobile operators and resells it under its own brand, requiring sophisticated software platforms for management.

Digitalk’s Platform Components:

Digitalk also offers a cloud-based wholesale voice trading platform that includes routing, billing, fraud prevention, and monitoring capabilities for international mobile carriers. This mission-critical technology enables Communication Service Providers (CSPs) to launch, operate, and monetise MVNO services efficiently.

What Cross-Selling Opportunities does the Transaction Create?

The acquisition positions Hansen to generate substantial cross-selling revenue through its expanded product portfolio and customer base. Hansen’s globally scalable applications are highly complementary to Digitalk’s MVNO solutions, creating multiple revenue expansion pathways.

Cross-Selling Benefits:

• Hansen can offer Digitalk’s MVNO solutions to its existing Global Communications Suite customers.
• Digitalk’s customer base of approximately 150 companies gains access to Hansen’s broader technology portfolio.
• A combined global sales capability enhances market penetration across more than 80 countries.
• Deep integrations with global CSPs provide credibility and market access.

The rationale for the deal extends beyond immediate financial benefits. Hansen will be able to offer Digitalk’s solutions to its existing customers, leveraging its global sales capability and standards. This creates a powerful network effect where both customer bases benefit from the expanded solution set.

How will the Wholesale Voice Platform Expand Hansen’s Service Portfolio?

Beyond MVNO capabilities, the Hansen Technologies Digitalk acquisition delivers a sophisticated wholesale voice trading platform that serves international mobile carriers and wholesale service providers. This cloud-based solution includes functionality for routing, billing, fraud prevention, and monitoring, addressing a market segment that complements Hansen’s existing offerings.

Wholesale Voice Platform Capabilities:

• Routing Intelligence: Optimises voice traffic paths for cost efficiency and quality.
• Billing Systems: Revenue management for wholesale transactions.
• Fraud Prevention: Real-time monitoring and threat detection.
• Performance Monitoring: End-to-end visibility across carrier-grade networks.

This technology provides Hansen with entry into carrier-grade applications, expanding its addressable market beyond traditional CSP solutions. CEO Andrew Hansen stated that the acquisition “provides new growth avenues in MVNOs and wholesale voice,” highlighting the importance of both technology platforms.

When will the Acquisition of Digitalk Complete?

The completion timeline for the Hansen Technologies Digitalk acquisition extends through the remainder of 2025. Hansen expects to finalise the transaction by the end of the 2025 calendar year, subject to regulatory approvals and other standard closing conditions.

Critical Timeline Events:

Following completion, Digitalk will operate as a wholly owned subsidiary of Hansen Technologies Limited, maintaining operational continuity whilst enabling the capture of synergies. CEO Andrew Hansen confirmed, “We look forward to discussing this acquisition at our upcoming Annual General Meeting on 20th November 2025,” providing shareholders with further insights into integration plans.

How does this deal affect Hansen’s Geographic Footprint?

The acquisition of Digitalk significantly enhances Hansen’s geographic footprint and market resilience. Hansen currently serves companies with customers in over 80 countries, and Digitalk’s presence across more than 30 countries further diversifies this international base.

This expansion reduces geographic concentration risk and provides Hansen with direct access to new markets where Digitalk has established a strong presence. The addition of 150 blue-chip customers from diverse regions reinforces Hansen’s position as a leading global provider of software for the communications industry.

In summary, the acquisition provides Hansen Technologies with immediate earnings accretion, an expanded technology portfolio, and a broader international customer base. Investors will be monitoring for the successful completion of the transaction by the end of 2025 and the subsequent integration of Digitalk’s operations.

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