Telco giant formed after SOUL merges with TPG

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Telco giant formed after SOUL merges with TPG

SP Telemedia, the telecommunications company known as SOUL, is to merge with internet service provider TPG.

The combined group will have one of largest DSLAM networks in Australia and will be one of Australia’s most profitable telecommunications companies in terms of profit margin, SP Telemedia.

The merger, to be effected through SP Telemedia acquisition of TPG for an acquisition price of $150 million in cash, to be funded through debt, plus 270 million SP Telemedia shares.

Before amortisation and synergies, the combined group, including four months’ contribution from TPG, is expected to achieve revenue of $469 million.

Robert Millner, chairman of SP Telemedia, said: “The merger of SP Telemedia and TPG will create one of Australia’s largest and most profitable telecommunications companies, with extensive owned network coverage for voice, video and data applications. We believe that following the merger SP Telemedia will be strongly positioned to participate in any further industry consolidation.”

David Teoh, managing director of TPG, said: “The merged business will be in an enviable position to continue the strong growth achieved by TPG to date. The extensive IP voice, video and data network of Soul and its mobile and business product capability, combined with TPG’s DSLAM network and strong customer presence and management, will place the business in a competitive position for the future.”

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