M2 acquires Clear Telecoms for $24.5m

Small to medium business telecommunications reseller M2 has announced the acquisition of the business assets of Clear Telecoms this morning, in a deal worth approximately $24 million.

(Handshake image by Johnny Magnusson,
public domain)

The assets acquired will include all customer contracts, operating systems, brands and intellectual property. Clear Telecoms currently services 20,000 customers with an annual revenue of $70 million.

M2 chief executive officer Vaughan Bowen told ZDNet Australia that Clear Telecoms was exactly matched to the core business of M2.

"From our point of view it was a very logical target. We've been in negotiations for several months with the owners and we've pleasingly got to terms with what we regard as a very appropriate price," he said.

Bowen said the integration would be straightforward, as Clear will operate as a subsidiary under M2 Clear, with only payroll, human resources and other back-end functions being integrated into the parent company. He said that the company has secured the continued employment of all senior management roles and has extended continued employment offers to all 40 Clear Telecoms employees. Following the acquisition, Bowen said that the number of M2 employees will be around 490.

Bowen said M2 would focus on offering mobile and broadband products to Clear Telecoms customers who had previously only had fixed-line products.

"We're putting on a dedicated team that will be focusing on providing customers with an additional service," he said.

The takeover will also see M2's customer base rise to approximately 120,000, according to Bowen.

Last year, M2 acquired Clever's resale arm for $5 million.