According to a New Tel spokesperson, the AU$50 million dollar deal, payable over 15 months, will see the company's customer base double to 300,000 and increase revenues to $250 million.
-We have made no secret of the fact we have been looking at a number of opportunities," said a company spokesperson. -We finally seattled on DigiPlus Holdings because, like New Tel the are predominantly focussed on ethnic communities."
Established in 1997, Sydney-based DigiPlus Holdings offers a range of products including local, national and international services, sold through agents working within different language groups. While New Tel currently works in both the business and residential sector, the DigiPlus merger will serve to solidify its residential customer base.
The deal will see New Tel take control of DigiPlus Holdings' Sydney offices and staff.
In a statement to the press New Tel managing director Peter Malone said he planned to use the new customer base to cross sell products into the DigiPlus customer base.
