The telecommunications sector continues to consolidate following a recent merger of major players.
Three Amcom directors will be appointed to the Vocus board following the merger, with the combined Amcom and Vocus market capitalisation expected to be approximated $1.3bn.
Clayton Utz partner Mark Paganin who led the transaction, said this is this most recent transaction in what has been an active period in the telco sector. He said the firm has been acting for Amcom since 2009.
“The merger was the lead transaction and catalyst for a period of major consolidation and activity in the telecommunications sector,” he said. “The combination of Amcom and Vocus is highly complementary and expected to generate significant cost and revenue synergies, which includes an enhanced telecommunications infrastructure footprint, significantly enhanced growth profile and increased scale.”
The deal follows TPG’s merger proposal to iiNet, M2’s competing proposal for iiNet and TPG’s acquisition of a 19.9 per cent stake in Amcom, Paganin said.
“The significant activity involving key players such as Amcom, Vocus, TPG, iiNet, M2 and Macquarie Telecom demonstrates that we are in the midst of a period of consolidation in the telecommunications sector,” said Paganin.
“With the key drivers to increase market share, realise synergies and secure a strong position once the NBN is complete, given the dynamics in the sector, the expectation is there will be further consolidation during this financial year.”