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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.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: Austar
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Tags: Austar, Clear Telecoms, M2 Telecommunications Group, mergers and acquisitions, vaughan bowen
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