Listed telecoms and IT solutions provider, FoneWorx has announced that the purchase of the shares owned by the Issie and William Kirsh Family Trusts (Kirsh Family) has been completed.
The Kirsh Family is now the largest shareholder in FoneWorx with a 32, 8% stake after the transaction received 100% shareholder support.
Mark Smith, CEO of FoneWorx said “We are very pleased that our shareholders supported this strategic transaction. As alluded to in prior announcements, this was always intended to be the first phase in a broader strategic initiative with the Kirsh Family, and we are now in a strong position to make this a reality.”
William Kirsh added: “We are very happy with the progress made, and I am also extremely pleased that the new company that I have started, and in which my father has partnered me, Value+ Nettwork (Value+), can now move towards merging with FoneWorx, that is intended to be mutually beneficial for both companies.”
Since resigning as CEO of Primedia in August 2009, William Kirsh has spent two and half years developing and refining the strategic blueprint for Value+ , as well as commencing a series of acquisitions in line with this blueprint.
Value+ straddles a number of sectors including the data and analytics market, rewards and benefits sectors.
“As the business model is technology and intellectual property driven, it is very scalable. The operating leverage is therefore high, with good operating margins and quality free cash flow generation characteristics – common to that of FoneWorx,” said Kirsh.
“FoneWorx has been actively looking for new growth opportunities and the proposed merger with Value + is considered a great strategic fit for us. William has a long and successful track record in consolidating industries, and the strength of the combined experience of the two companies management teams, augurs well for a good partnership,” Smith added.
The merger terms for the two companies and additional information on the Value+ strategy and its businesses are expected to be announced towards the end of November.