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.