Australia’s M2 Telecommunications has announced that it is to acquire the customers and network assets of US-based Primus Telecommunications Group’s local subsidiary for AUD192.4 million (USD199 million). Under the terms of the transaction, which is expected to be completed on 1 June 2012, M2 will purchase 100% of Primus Telecom Holdings and its subsidiaries, with M2 saying that, as well as adding scale to its existing operations, the acquisition will ‘contribute next generation sales and support capability, ensuring that M2 is well prepared for the opportunities presented by the deployment of the National Broadband Network (NBN)’. In announcing the deal, M2 noted that Primus’ primary assets consist of: approximately 165,000 customer contracts, comprising a mixture of residential, small and medium business, corporate and wholesale customers; the iPrimus and Primus brands; around 500 employees, including the existing management team; and the national Primus network, which comprises data centres and metro fibre rings, providing the capability to sell and support next generation cloud-based services.
Commenting on the development, M2 CEO Geoff Horth noted: ‘We are delighted to bring Primus into the M2 Group. The combined group will benefit from the strengths that each entity brings, reinforcing M2’s position as the leading challenger in the Small to Medium Business market. 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.’