M2 expands customer base with iPrimus purchase

The purchase effectively doubles the markets available to M2 and delivers it infrastructure for the first time, including a national fibre optic network three data centres. Under the deal, the iPrimus brand will remain in Australia, and all 500 staff and chief executive, Tom Mazerski, will stay with the company.

The purchase propels M2’s business into new areas of residential and corporate services. Until now it has focused on selling telecommunications services to small-to-medium-sized businesses and wholesale services.

“It is a match made in heaven,’’ Mr Mazerski said this morning. “When you step back and look at it, the things we have and do well are different to the things M2 has and does well.’’

Parent company Primus Telecommunications Group International (PTGi) expects to gain about $US200 million from the sale. It also announced this morning its Canadian business would be split in two – a data centre only business, and voice and telephone business for consumers and business customers.

Primus chief executive Peter D. Aquino said it would help M2 through the acquisition process.

“The successful sale of Primus Australia to M2, a local operator in a consolidating market, is a transforming transaction for both companies. The net proceeds from the sale of Primus Australia represent a significant outcome of our strategic review process.’’

Primus’ infrastructure includes data centres in Sydney and Melbourne and approximately 10,800 kilometres of fibre optic cable across Australia. It also has fibre networks in Perth, Adelaide, Melbourne, Sydney and Brisbane.