Welcome to the Team: CityLink owner heads Farmside

5 Nov 2012

TeamTalk, the owner of the CityLink fibre-optic broadband network, intends to acquire rural telecoms provider Farmside Group for up to NZD42.1 million (USD34.7 million), as it looks to expand its existing footprint beyond its urban catchment area. According to the National Business Review, Wellington-based TeamTalk has agreed to buy Farmside for an upfront payment of NZD19 million in cash and NZD12 million in TeamTalk shares, with an additional NZD7 million cash and NZD4.1 million in potential ‘earn-outs’ [which are directly determined by future profits] over the ensuing twelve months. The deal is subject to shareholder approval, with a special meeting expected to be held on 11 December. TeamTalk managing director David Ware commented: ‘The purchase is an opportunity to grow both businesses by building on what each does best. I am confident our shareholders will see value in this acquisition and we look forward to welcoming the Farmside staff and customers to TeamTalk’.

New Zealand, CityLink (New Zealand)