SP Telemedia (SPT) chairman David Teoh has brushed aside concerns TPG and PIPE Networks cultures will clash saying the two have a lot in common.
After the announcement of the acquisition of PIPE by SPT this week, Teoh told Computerworld both companies are efficient, well-run, cost-conscious with "excellent staff", and will work “very well” together.
“About 50 per cent of TPG’s staff have been with the company for more than five years and we see no reason why other talented and enthusiastic individuals will not continue to grow with PIPE,” he said.
Teoh also pointed to Optus, which operates both wholesale and retail arms, as an example of how the tie up might work.
Earlier this week in a statement to the ASX, SP Telemedia (ASX:SOT) said it will acquire PIPE Networks (ASX:PWK) for $6.30 per share and valued the latter's assets at approximately $373 million; a premium of 15 per cent on the company's volume weighted average price over the past three months.
The deal is subject to the approval of authorities in Australia and the US, and PIPE's shareholders, which will be sought at a meeting likely to be held in March with the deal expected to be finalised by early April.
Although admitting the deal is far from finalised, Teoh said the company looks forward to the opportunity to grow PIPE’s wholesale and corporate business operation.
“SPT already has a significant wholesale business offering internet, private networks and voice,” he said.
“If this deal goes though, we don’t intend to reduce any of PIPE’s wholesale business, where in fact much of its current business is already under long-term contract with PIPE’s foundation and other customers.”
Teoh also indicated SPT will continue to push its DSLAM network - which currently has more than 330 exchanges - into regional areas, and expects that Western Australia will have more than 30 exchanges active by the second quarter of 2010.
Despite a wave of online comment regarding the acquisition, a leading analyst pointed out the deal was far from completed and its operational structure not likely to be known for some weeks or months.
Editor's note: After publishing the story, representatives from SP Telemedia have since contacted Computerworld and requested we change attribution of comments provided to us by email. The representative said whilst the comments originally attributed to David Teoh are David’s views, they were compiled on his behalf by his team. This was not made clear in the original email provided to Computerworld.