BRISBANE TECHPRENEUR SELLS FONEBOX TO US COMPANY

BRISBANE TECHPRENEUR SELLS FONEBOX TO US COMPANY

FONEBOX founder Jordan Grives has dialled up a lucrative exit strategy with the sale of his telecommunications business.

An undisclosed NASDAQ-listed US company, believed to be J2 Global, has acquired Fonebox in a deal reported to be worth $30 million.

The Brisbane Young Entrepreneur Awards finalist launched the business-to-business phone services provider in 2008 at just 18 years old.

Today, a team of 83 employees manage more than 4000 clients across Australia and New Zealand. The business turned over almost $10 million last financial year.

Grives says the deal has been a long time in the making, but can't disclose the buyer for reporting reasons.

"It was one of our biggest competitors, but now we are effectively joining forces," Grives says.

"The plan is to continue scaling up the business, I know they're on a very rapid growth trajectory.

"I'm still going to be around. Basically, I'll help integrate all the local businesses and play a regional sales director role across Australia and New Zealand."

He says Fonebox's client base and technology attracted the new owner, particularly the company's call routing and call recording systems.

The acquisition will be executed as more of a partnership, with the Fonebox brand and team to remain.

"The only thing changing is the parent company," Grives says.

"It will allow larger-combined clients to scale up and grow across Australia and New Zealand, and dabble in new products.

"Fonebox is now a much bigger business with the same great service. It gives us bigger leverage and buying power."

Grives plans to establish his own venture capital fund, Capital J Investments, to support emerging businesses next year.

He says the fund will initially focus on Brisbane-based technology businesses, but will consider any opportunities that come his way.

"Growing a business from scratch, you learn a lot along the way and the product doesn't necessarily matter as long as you're passionate," he says.

"I've learnt a lot that I can offer to budding entrepreneurs apart from just injecting cash. I want to see if it's something I can get behind and be passionate about to provide mentorship."

Advisors, Ben Wilson and Matthew Foote of Deloitte Corporate Finance and lawyers Tim Sayer and Heath Manning of Talbot Sayer worked on the deal.

 

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest...

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

In an effort to reduce the number of SMS phishing scam victims...

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Brisbane-based Stralis Aircraft has become one step closer to its a...

A year after the PwC scandal, the furore is gone – as well as the appetite for structural change

A year after the PwC scandal, the furore is gone – as well as the appetite for structural change

It was a scandal that rocked the shaky foundations of Australia&rsq...