M2 Group Limited (ASX:MTU)
has inked a deal to boost its investment in Aggregato Global Limited who will then acquire the international calling card business of a rival company.
The telecommunications services provider’s backed-Aggregato will acquire the assets from ASX-listed Tel.Pacific Limited (ASX:TPC)
, whose stock shot up 40 per cent following the announcement.
While the transaction is subject to approvals M2 expects Aggregato to be the largest supplier of calling card services in Australia once the deal is tied-up.
M2 CEO Geoff Horth says the company hopes its increased investment in Aggregato will enable further growth and development for the benefit of the business and M2 shareholders.
M2 Group reported a net profit of $31 million in the first half of the 2014 financial year.