M2 Telecommunications to buy Orion (Australia)

Australian telecommunications reseller Orion Telecommunications and communications provider M2 Telecommunications Group have reached an agreement for M2 to acquire Orion Telecommunications (excluding Orion’s Irish and UK operations). The scheme, recommended for shareholder approval by the board of Orion, will see Orion shareholders receiving a combination of cash and M2 shares. The proposal values Orion at a minimum of AUD 0.229 per share, a premium of approximately 31 percent over Orion’s current share price. M2 CEO Vaughan Bowen said he expects the acquisition will increase M2′s annualised revenue by in excess of AUD 30 million to a consolidated level of between AUD 95 million and AUD 100 million and, most importantly, increase M2′s earnings per share by upwards of 40 percent.