M2 buys Austar mobile assets, looks for more acquisitions

Latest acquisition is expected to add about $1.3 million to M2's bottom line.

Telecommunications services provider, M2 Telecommunications (ASX:MTU) has expanded its regional presence acquiring certain Austar mobile assets.

They include customer contracts and related records amounting to 15,000 active Austar mobile customers with annual revenues of about $10 million.

Austar will receive a net cash consideration of about $2 million, which will be funded out of M2’s operating cash flows.

The acquisition is expected to provide an additional $1.3 million in pre-tax profit to M2 in FY12.

Austar mobile customers will be integrated into the established customer support operations of M2’s Southern Cross telco business during the next few months.

“This transaction represented an opportunity to cost-effectively expand our Southern Cross telco business with the sizable Austar mobile customer base,” M2 managing director, Vaughan Bowen, said in a statement to the ASX.

The news comes on the back of M2’s purchase of Clear Telecom’s business assets earlier this month.

At the time, Bowen indicated the company was still on the acquisition hunt, particularly in SMB and wholesale services market.

Register now for the ARN Security Forum 2013 on June 4 at the Sydney Mint

More about: Austar
References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: M2 Telecommunications Group, Clear Telecoms, Austar, Mergers and acquisitions, vaughan bowen
rhs_login_lockGet exclusive access to ARN's news, research and invitation only events.
ARN Distributor Directory
Find distributors by name | vendor | location
Channel Deals
/deals/d-link/504_win-a-piaggio-fly-150-scooter-valued-at-3000
D-Link

WIN A Piaggio Fly 150 Scooter (valued at $3,000)

More details »
ARN Vendor Directory
Find vendors by name | category

iAsset is a channel management ecosystem that automates all major aspects of the entire sales,marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Latest Jobs