M2 Buys Primus

The big telco news of the week has been the purchase of Primus Telecom by the M2 Telecommunications, for $192.4 million. 

I believe M2’s buy up of competitors can now officially by termed a ‘spree’. They have already acquired People Telecom, Commander, Bell Networks, Clever and a host of others. However, none of these purchases was on a scale like Primus (Commander cost about $19 million).

Primus is a respectable player in the Australian telecommunications and data market, with corporate clients including Hungry Jacks and Payless Shoes, and a fibre network that reaches over 60 Australian cities. Primus has over 500 employees.

Upon announcing the acquisition, M2 shares suffered their biggest fall in four months.