Menu
​Vocus tightens focus on synergies from m2 merger

​Vocus tightens focus on synergies from m2 merger

De-duplication to seed $40m p/a, with one off costs of $20m

Soon-to-be-CEO of Vocus Communications, Geoff Horth.

Soon-to-be-CEO of Vocus Communications, Geoff Horth.

Vocus has revealed how it will be making up $40 million in cost synergies from its merger with m2.

Already in the process of merging Amcom into the business, which is expected to be completed in April next year, the m2 merger which is expected to give the new business a market cap in excess of $3 billion, and make it the fourth largest telco on the ASX.

In a note to Asian investors, the company said it is expecting to achieve synergies of $40 million per annum, which will be fully realised by FY18. This will be made up of synergies from network optimisation and consolidation, leveraging the existing assets of the two companies.

Non-network savings will come from the removal of duplicated public company costs (m2 will delist from the ASX in early 2016), duplicated faciligies and selling, general and administrative expenses.

This will include one off costs of $20 million to realise these synergies.

The company has made no comment regarding the prospect of job cuts.

However, Vocus believes there will be futher revenue synergies via the enabling of M2’s DSLAM network in A/NZ, the utilisation of m2’s distribution network, and the ability to cross-sell complementary products and services to m2 and Vocus customers across both markets – such as bundling power and gas in with retail customers’ bills.



Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags VocusamcomM2

Featured

Slideshows

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Kiwi channel debates GDPR as Reseller News Exchange hits Wellington

Kiwi channel debates GDPR as Reseller News Exchange hits Wellington

This exclusive Reseller News Exchange, in association with Arrow ECS ANZ, ForeScout and StorageCraft, went on the road to debate the early implications of GDPR in New Zealand, extracting opportunities while evaluating challenges for the channel in the year ahead.

Kiwi channel debates GDPR as Reseller News Exchange hits Wellington
Show Comments