M2 Telecommunications Group Ltd
(ASX:MTU) is expanding into the small and medium business telco market, announcing that it has inked a agreement to acquire all the business assets of Clear Telecoms.
The Clear assets are expected to boost M2’s annual group revenues to over $500 million and contribute over $8 million in EBITDA in the 2011-12 financial year. Underlying earnings per share are expected to rise to around 5 cents with the acquisition, a lift of over 20 per cent on M2’s earnings per share guidance for the current financial year.
M2 will acquire all of Clear’s customer contracts, operating systems, brands and other related intellectual property.
In the 2010 financial year, M2 Telecommunications Group generated a net profit of $16.15 million.
