M2 buys Clear Telecoms for $24.5m

Business telecom operator M2 Telecom (ASX:MTU) has purchased rival Clear Telecoms for $24.5m, in its most significant acquisition since 2009

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 per cent in Tuesday's trading to close at $3.280.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags businessTelecommunicationsacquisitiontelcosClear TelecomsM2 Telecom

More about CommanderCommander

Show Comments