Sydney-based telecommunications specialists Telecorp and FlowCom have snapped up the remains of beleaguered ISP Green Communications, which went into voluntary administration in February.
PricewaterhouseCoopers brokered the simultaneous deals, which saw prepaid services specialist Telecorp acquire parent company Green Communications, while NSW carrier FlowCom bought Green’s subsidiary DSL (digital subscriber line) business, iGreen.
The acquisition of Green’s assets was a significant boost for pre-paid services focused Telecorp, adding “about 30 to 35 per cent” to its size, according to CEO Steve Picton. Green’s phone card business was shipping around 50,000 cards a month, representing a monthly sales turnover of $1 million, while the post-paid business turned over $500,000 a month with around 6000 customers, Picton said.
Telecorp’s prepaid card business would be boosted by the brand awareness of Green’s phone cards (formerly known as Apple), which were “the Coca Cola of the prepaid market”, Picton said.
After Telecorp had bid for the Green Communications business, Picton had lined up FlowCom to purchase the iGreen business, which represented DSL and a small number of dial-up customers.
FlowCom had attempted to acquire iGreen in a “relatively intact” state, and would continue to run it as an independent unit, according to CEO Tom Amos. “We’re going to add some resilience, since they were just a reseller and we have our own backbone.”
As part of the deal, FlowCom has acquired iGreen’s DSL assets and customer base, and brought four or five iGreen employees on board, Amos said.