ASX-listed M2 Telecommunications has acquired all of the business assets of privately owned Clear Telecoms for a net cash consideration of $24.5 million payable over three payment portion and subject to milestones.
Sydney-headquartered Clear was a provider of business telecommunications services that generated a recurring revenue of about $70 million from 2000 small and medium customers, M2 reveled in its statement to Securities Exchange.
Clear assets included customer contracts, operating systems, brands and all other related intellectual property.
It was the most sizable acquisition since the buy of Commander in June 2009, M2 said in an announcement to the ASX. In 2008, M2 bought People Telecom.
With the acquisition, M2’s group revenues would surpass $500 million per annum and strengthen M2's position as a strong “challenger in the small business telecommunications space", it said.
M2’s managing director director Vaugh Bowen said the addition of Clear was an “extremely positive step in further expanding our presence in the small and medium business telco market”.
“The Clear customer base is not only sizable but is of a very high quality. We see considerable opportunity to add further value to the existing customers and in doing so expand both Clear’s revenues and earnings contribution over the coming years,” he said.
M2 has employed Clear senior operational management and claimed to have extended offers of continued employment to all other Clear employees.
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Issue: 322 | December 2013
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