06/03/2007 - 16:45

Amcom acquires People Telecom's fibre business for $6.2m

06/03/2007 - 16:45

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Perth-based Amcom Telecommunications Ltd has acquired the Perth high-speed fibre and broadband DSL business of Syndey-based People Telecom Ltd for $6.2 million.

Amcom acquires People Telecom's fibre business for $6.2m

Perth-based Amcom Telecommunications Ltd has acquired the Perth high-speed fibre and broadband DSL business of Syndey-based People Telecom Ltd for $6.2 million.

 

 

The full text of a company announcement is pasted below

Amcom Telecommunications Limited (ASX: AMM, AMMO) wishes to announce that it has acquired the Perth fibre business of People Telecommunication Limited (ASX: PEO) for $6.25m.

The business provides high speed fibre and broadband DSL services. Additionally, the acquisition includes one of Perth's premium data centres offering some 600 sqm of state of the art collocation space to Perth based Corporates.

"This business fits very well with our existing business platform and will increase our fibre business revenue by some 25% as well as enhancing the robustness and diversity of our network" said Mr Clive Stein, Managing Director and CEO (Designate).

We have estimated that the business will generate annual sales revenues of $6m and provide an EBITDA close to $2m per annum. The acquisition will be financed by a mix of internal cash flow and bank debt. The acquisition is EPS accretive and will provide immediate EBITDA and cash flow contributions.

The transaction is due to settle on 31 March 2007 and is able to be accommodated with a small increase in gearing from 1% to 7%.

"We see this as a strategic whole of business acquisition consolidating our position in the Perth corporate data market. The addition of this client base and infrastructure will provide opportunities to sell new products and expand our revenues" commented Mr Stein.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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