M2 completes Call Plus acquisition

M2 now New Zealand's third-largest Internet service provider

M2 has completed its acquisition of New Zealand Internet service provider Call Plus, the company announced.

M2 revealed in April that it had entered into binding agreements to acquire 100 per cent of Call Plus Group as well as associated SMB VoIP provider 2Talk.

In total Call Plus operates more than 400,000 consumer, business and wholesale services across a number of brands including Call Plus Business, Slingshot and Orcon.

The $246.7 million (NZ$250m) acquisition is expected to contribute NZ$250 million in revenue and NZ$45 million EBITDA in FY16.

"We are delighted to have completed the acquisition of Call Plus, bringing this highly complementary organically growing and profitable business into the M2 group," M2 CEO Geoff Horth said in a statement issued yesterday.

Horth reiterated comments he made in in April about a "cultural alignment" between M2 and Call Plus.

M2 earlier this year failed in its attempt to outbid TPG to acquire Australian ISP iiNet. An initial approach by M2 forced TPG to revise its offer for iiNet.

iiNet shareholders are due to vote on the TPG offer later this month. It also still requires Australian Competition and Consumer Commission approval, with the competition watchdog raising concerns about its impact on the broadband market.

In February M2 reported revenue of $546.2 million for the six months to the end of December, up 8 per cent on the same period in 2014.

Read more: Telstra wins big from mobile blackspot program

Net profit after tax (NPAT) for the half was $38.5 million, up 25 per cent.

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