M2 buys Clear Telecoms for $24.5m

M2 buys Clear Telecoms for $24.5m

Business telecom service provider M2 Telecom (ASX:MTU) has acquired rival Clear Telecoms for $24.5 million.

M2 said it had purchased Clear – including all 20,000 SMB customer contracts, as well as operating systems, brands and IP - through one of its subsidiaries.

M2 managing director Vaughan Bowen said the deal is the company's most significant transaction since the 2009 acquisition of Commander Communications for $19 million.

“The Clear customer base is not only sizeable but is of a very high quality.”

Clear currently has annual revenues of around $70 million, and is Australia's largest privately owned operator of business telecom services, he said.

M2 expects the acquisition to lift its ebitda FY12 by $8 million, and allow it to grow to annual revenues of $500 million.

The company has secured the employment of all Clear senior management, and has offered continued employment to all other Clear employees, M2 said in a statement.

MTU shares jumped 8.6% in Tuesday's trading to close at $3.280.

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Tags Mergers and acquisitionsvaughan bowenM2 Telecommunications Group LtdClear Telecoms

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