UPDATED: Primus sold to M2 for $192.4 million

UPDATED: Primus sold to M2 for $192.4 million

The transaction does not require PTGI stockholder approval and any financing conditions

Primus Telecom has been acquired by business-centric ISP, M2 Communications, for $192.4 million.

Primus Telecommunications Group Incorporated (PTGI), the parent company of Primus Telecom in Australia,has entered into a definitive agreement to sell the business to M2. The transaction does not require PTGI stockholder approval.

PTGi has been reviewing its business for some time and the sale of Primus in Australia was part of the outcome. M2 came into the picture early on in PTGi’s review process as one of the early candidates to buy up Primus Telecom.

Tom Maserski is currently the CEO of Primus Telecom and will retain his post once the acquisition is finalised in June.

Primus is focused on consumer and high-end business customers while M2 deals with SMBs. But the businesses will complement each other well, according to Mazerski.

“At Primus, we are heavily into infrastructure – we have our own fibre rings, our own technology nodes, whereas M2 has traditionally been a non-facilities-based company,” he told ARN. “So right away there is clearly a match and M2 is picking up a infrastructure rich network provider.”

Primus has promised a seamless transition for existing customers and the branding of the company will not be changed.

“We’re still going to be iPrimus for consumers and Primus Telecom for our corporate clients,” Mazerski said.

He said there are no plans for staff reduction at Primus at this stage.

M2 CEO, Geoff Horth, is eager to see the acquisition go through.

“The introduction of the Primus suite of next generation services along with the skilled and passionate team will ensure our sales teams are armed with the latest managed/hosted service offerings to meet the needs of current and prospective customers,” he said in a statement.

ARN will be speaking to M2 Communications later in the day.

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