M2's NZ unit buys Black + White

M2 Telecom's (ASX:MTU) wholly-owned subsidiary, M2NZ, has acquired fellow New Zealand telco Black + White Group

M2NZ has acquired all customer contracts, operating systems and IP associated with the Black + White brand in an all-stock transaction.

The M2 group has also appointed Black + White's founder and managing director, Johnathan Eele, as CEO of M2NZ.

M2NZ will issue 30% of its share capital to Black + White shareholders – consisting solely of entities controlled by Eele - as payment for the acquisition.

Announcing the purchase, M2 said it would boost the scale and management depth of M2NZ, although it intended to operate both brands separately. Currently M2NZ earns annual revenue of around $5 million.

The M2 group recorded revenueof $406.1 million in FY10, and grew its profit 119% to $16.2 million.

The company acquired SMB-centric operator Bell Networks Voice and Data in August for $4 million.

M2NZ has meanwhile hired New Zealand telecom industry veteran Troy Elliott as its sales director.