Amcom today announced it is set to acquire Australian provider IP Systems, which provides voice, video and data products to enterprises.
IP Systems operates an IP network over a fibre backbone in Australian and New Zealand cities. It has operation centres in Melbourne, Sydney, Brisbane, Canberra, Adelaide, Perth, Auckland and Wellington.
"This gives us the potential to significantly increase Amcom's share of our customers' spend on telecommunications services," Amcom CEO, Clive Stein said in a statement.
"The acquisition also provides opportunities for Amcom to extend its market footprint, with an Amcom office now in most major capital cities," Stein said. Amcom currently has its main offices in Perth, Adelaide and Melbourne. Stein has previously flagged intentions to expand to the east coast of Australia.
The initial consideration will be $6.5 million, made up of $5.3 million cash and 4.1 million Amcom shares. IP Systems would add approximately $12 million in revenues to the business, Stein said.
The deal is subject to shareholder approval at Amcom's general meeting in April. Should it go ahead, IP systems will become a wholly-owned subsidiary of Amcom, an integrated telecommunications and data provider.
Amcom also secured a $20 million, five-year contract with the Northern Territory Government earlier this month, extending Amcom's fibre networks in Darwin and Alice Springs to provide data services to schools and government agencies.