Amcom Telecommunications' shareholders have voted in favour of the telco's plan to acquire internet protocol communications provider, IP Systems in a deal worth $6.5 million.
The Western Australia-based telco (ASX: AMM) will finalise its purchase of the privately help IP Systems in "coming weeks", after first announcing the deal in February.
In a statement to the ASX, Amcom CEO, Clive Stein, said the deal would give Amcom a stronger play in the voice solutions market
“This is an exciting strategic acquisition for Amcom. It will enable us to capture a greater share of our customers’ telecommunications spend, and also means we will have a national presence with an office in most major capital cities,” Stein said.
Amcom will pay an initial consideration of $5.3 million in cash and $0.30 for 4.1 million IP System shares. Further consideration will depend on profitability levels achieved by IP Systems between 1 July 2009 and June 2012, the statement reads.
Once the deal is approved, IP Systems will operate as a wholly owned subsidiary of Amcom.
“IP Systems will add approximately $12m revenue to our strongly growing business. Very importantly, this transaction has been structured to be EPS accretive for our shareholders from the first full year of ownership,” Stein said.