Vox Telecom has announced that they will acquire the Absa Internet Access customer contracts and certain computer hardware.

In an official Vox Telecom SENS announcement the company said that: “The board of directors of Vox Telecom are pleased to advise shareholders of Vox Telecom that the Company has entered into a binding agreement, through its wholly owned subsidiary, @lantic Internet Services Limited, to acquire the customer contracts and certain computer hardware from Absa Bank Limited with effect from the closing date, being the latest of 1 December 2007 or 2 days after all the conditions precedent have been fulfilled.”

This is basically a purchase of Absa Internet Access (AIA). The purchase price for the AIA Acquisition is to be settled by Vox from existing cash resources, but is subject to approval by the Competition Authorities of South Africa and all other necessary regulatory bodies.

According to the official report from Vox Telecom their strategy continues to be the establishment of the Company as the preferred telecommunications alternative to the domestic incumbents, in the rapidly converging and deregulating industries of voice and data.

“The AIA Acquisition is regarded as being significant and strategic for both @lantic and Vox, as it will considerably improve the Group's positioning in the consumer Internet Service Provider (ISP) market and augment the Group's consumer customer base and market share.”

“Vox intends integrating the AIA customer base into its wholly owned subsidiary responsible for consumer ISP solutions, namely @lantic. The addition of AIA's customer base will solidify @lantic's consumer ISP positioning as the third largest ISP in this market domestically.”

Higher income

Yesterday Vox released a SENS statement about their financial results for the year ended 31 August 2007 which is expected to be announced on or around 14 November 2007.

Shareholders are advised that a reasonable degree of certainty exists that the company's earnings per share is expected to be between 90% to 110% higher and headline earnings per share are expected to be 100% to 120% higher, than the 3.86 cents and 3.36 cents achieved respectively in the prior year.

The improved performance is primarily due to the increase in contracted annuity income from both organic and acquisitive growth of the Company.

More acquisitions

Apart from the ABSA Internet deal Vox is involved in more acquisitions. The company informed shareholders that “in addition to the AIA Acquisition and further to the cautionary announcement of 16 August 2007, Vox is currently engaged in an additional acquisition, which may have a material effect on the price of the Company's securities.