Amaysim's Ownership: Australian Roots Or Foreign Investors?

Amaysim Australia Ltd. is an Australian mobile virtual network operator and provider of mobile phone plans. Amaysim was founded in 2010 and was listed on the Australian Securities Exchange from 2015 until its acquisition by Optus in 2021. This article will explore the history of Amaysim, its acquisition by Optus, and whether Amaysim remains an Australian-owned company.

Amaysim was acquired by Optus in 2021

Amaysim Australia Ltd. is an Australian provider of mobile phone plans. Amaysim was founded in 2010 as an Australian telecommunications provider. The company was listed on the Australian Securities Exchange from 2015 until its acquisition by Optus in 2021.

Optus, a Singapore-based telecommunications giant, acquired Amaysim in an all-cash deal valued at $250 million. The deal was finalised after all conditions were met, and Amaysim's shareholders approved the sale. The acquisition added 1.2 million customers to Optus, and the company stated that Amaysim would remain a standalone brand under its ownership.

Amaysim had built a strong presence in the market as a mobile virtual network operator, specialising in SIM-only mobile plans. By 2024, Amaysim had over 1.5 million mobile subscribers.

The acquisition by Optus brought together two strong challengers in the market, with a shared focus on delivering the best outcomes for customers. Optus's CEO, Kelly Bayer Rosmarin, emphasised the benefits of the acquisition, stating that it "cements our leadership in the MVNO market and allows us to offer customers another compelling option to connect via our world-class mobile network."

The purchase agreement between Amaysim and Optus was entered into in November 2021, and the deal closed after receiving shareholder approval and meeting all necessary conditions.

Amaysim was founded in 2010

Amaysim was founded in November 2010 by Peter O'Connell, Rolf Hansen, Christian Magel, Thomas Enge, and Andreas Perreiter. It is an Australian mobile virtual network operator and provider of mobile phone plans, specialising in SIM-only mobile plans. Amaysim became a publicly listed company in 2015 and was listed on the Australian Securities Exchange until its acquisition by Optus in 2021.

Amaysim has since grown to become one of the largest MVNOs in Australia, with over 1.5 million mobile subscribers as of June 2024. The company has made several acquisitions over the years, including Vaya, another Australian mobile virtual network operator, in 2016, and online energy retailer Click Energy in 2017. Amaysim has also expanded into the broadband market and made further acquisitions of mobile virtual network operators, such as Jeenee Mobile and OVO.

In recent years, Amaysim has faced some challenges, including penalties for misleading advertising in 2020 and the sale of its broadband customers in 2018 due to high wholesale costs and intense competition. However, the company continues to operate as a standalone brand under Optus ownership, serving Australians with simplified and cost-effective mobile phone plans.

Amaysim has experienced significant growth and expansion since its founding in 2010, establishing itself as a major player in Australia's MVNO market. With its focus on providing straightforward and affordable mobile plans, Amaysim has attracted a large customer base and continues to evolve to meet the changing needs of Australian consumers.

Amaysim's acquisition of Vaya in 2016

Amaysim Australia Ltd is an Australian mobile virtual network operator and provider of mobile phone plans. Amaysim was founded in 2010 as an Australian telecommunications provider by Peter O'Connell, Rolf Hansen, Christian Magel, Thomas Enge and Andreas Perreiter.

In January 2016, Amaysim acquired Vaya, another Australian mobile virtual network operator, for A$70 million. Vaya, which was launched in 2011 in Brisbane, had seen its subscriber base double to 140,000 in the previous two years. Its most popular offering was an $18 per month mobile deal aimed at younger, price-sensitive phone users.

Amaysim's acquisition of Vaya was described as a complementary acquisition, which would extend its reach into the $18 to $27/month mobile market that fell just under the $30 to $50/month market Amaysim was currently focusing on. The $70 million enterprise value included $20 million in equity value ($5 million in cash and $15 million in Amaysim shares) to Vaya's existing vendors. Under the deal, Amaysim also took on $50 million worth of Vaya's debts to Optus, to be paid over the next two years.

Amaysim's CEO Julian Ogrin stated that the deal would "significantly improve Amaysim's milestone targets" and "accelerate [their] growth strategy". He also mentioned that the acquisition would allow them to grow their number of subscribers on the same network and in a complementary market segment. Amaysim intended to keep the Vaya brand and operate it separately from the Amaysim brand, similar to the current practice with Virgin Mobile and Optus.

Amaysim fined for misleading advertising

Amaysim Australia Ltd. is an Australian mobile virtual network operator and provider of mobile phone plans. Amaysim was founded in 2010 and was listed on the Australian Securities Exchange from 2015 until its acquisition by Optus in 2021.

In January 2020, Amaysim published an advertisement on Twitter that included the statement "your mother loves the Unlimited Mobile Data offer from amaysim" and the hashtag "#UnlimitedMobileData". However, the plan only included unlimited data for the first three renewals, after which it reverted to a capped data allowance.

In October 2020, Amaysim was fined $126,000 by the Australian Competition & Consumer Commission (ACCC) for misleading advertising and misrepresenting the "unlimited" data it claimed to provide. The ACCC alleged that Amaysim's advertisement breached Australian Consumer Law and was likely to mislead consumers.

This was not the first time Amaysim had been fined for misleading marketing messages. In 2019, Amaysim was ordered to pay $900,000 by the Federal Court for making false or misleading claims about discounts and savings on its energy plans. Amaysim's electricity and gas brand, Click Energy, had told customers in Victoria and Queensland that they would receive significant discounts if they paid their bills on time. However, these discounts were often much smaller than advertised and were calculated based on higher market offer rates rather than the standing offer rates available to all consumers.

The ACCC has regularly taken action against the telco industry for misleading and deceptive advertising. Amaysim's fine serves as a reminder to all telecommunications and energy retailers that making misleading pricing claims is unacceptable and in breach of Australian Consumer Law.

Amaysim's online energy retailer, Click Energy

Amaysim Australia Ltd. is an Australian mobile virtual network operator that provides mobile phone plans. In 2017, Amaysim acquired the online energy retailer Click Energy for AU$120 million. This acquisition was part of Amaysim's strategy to expand its range of services to Australian households and offer bundled offerings, including broadband, mobile, and energy services. Amaysim CEO Julian Ogrin stated that energy was the "most logical vertical" to complement their existing products.

Click Energy, as part of Amaysim, faced penalties of $900,000 in 2019 for making misleading marketing claims about potential discounts and savings available to Victorian and Queensland consumers. The Federal Court of Australia found that between October 2017 and March 2018, Click Energy had misled consumers about the size of the discounts they would receive by calculating them based on higher market offer rates.

Following the acquisition of Click Energy, Amaysim expected an additional 300,000 households to subscribe to its expanded range of services, with an average spend of AU$200 per household per month. Amaysim also anticipated a significant boost in earnings per share and cost efficiencies by the end of the 2017-2018 financial year.

In September 2020, AGL Energy signed an agreement to acquire Click Energy from Amaysim for $115 million, marking a transition in the ownership of the online energy retailer.

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