Vocus Communications (ASX: VOC) will acquire the remaining 90 per cent of shares in Amcom Telecommunications (ASX: AMM), the company announced today following an ASX trading halt.
The two companies have entered into a scheme implementation agreement. If approved by Amcom Telecommunications shareholders, they will receive 0.4614 Vocus Communications shares for each Amcom share held. This works out to $2.45 per Amcom share.
According to an ASX statement, the combined businesses would have a market captilisation of $1.1 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) of $100 million in the financial year 2015. The transaction is expected to be completed in April next year.
According to a statement, three Amcom directors will join an expanded Vocus Communications board. Amcom CEO Clive Stein will continue to work with the business in 2015 to help with the transition.
“This acquisition enhances Vocus’ positioning to create a national telecommunications infrastructure provider to service commercial, wholesale and channel customers. This is an exciting day for both sets of shareholders,” said Vocus Communications chairman David Spence.
For example, the acquisition will create a company that has fibre optic networks and data centre infrastructure in both Australia and New Zealand.
In October, Vocus Communications announced that it held a 10 per cent interest in Amcom Telecommunications.
At the time, Vocus Communications CEO James Spenceley said the company had approached Amcom Telecommunications’ board of directors to gauge their interest about bringing the two companies together.
In July 2014, Vocus Communications confirmed that it had acquired New Zealand-based fibre provider FX Networks for $107.7 million (NZ$115.8 million).
The FX Networks business is expected to deliver between NZ$13.5 to $14.5 million of Vocus’ earnings before interest, depreciation and amortisation (EBITDA) in the first year following acquisition.