Wednesday, 15 April 2009

People Telecom acquired by M2 – Australia

People Telecom has been acquired by fellow Australian telecommunications company M2. Both companies operate as MVNOs in Australia with People Telecom using the Vodafone Australia network and M2 Mobile using Optus.

The takeover of People Telecom has been in the pipeline since December 2008 and the deal is expected to be worth approximately AUD 19,000,000. Shareholders in People Telecom were offered 0.0916 M2 shares and AUD 0.6886 – with an additional consideration of AUD 0.0068 – for every People Telecom share.

Vaughan Bowen, Chief Executive Officer of M2 said: "It's an acquisition of a very sensible and complementary nature. We're not taking the business on as just a customer bolt-on. The actual business of People Telecom will continue to be run as an entity unto itself, the People Telecom brand will be maintained, their head office operations in Sydney will be maintained, and there's a strategic advantage in that because our business is very Melbourne-centric."

With the acquisition of People Telecom M2 is hoping to generate AUD 250,000,000 a year in revenue, which will make it a leading ‘non-infrastructure’ telecommunications company.