Pacific Internet to buy telephony services reseller T3

Stuart Corner
Thursday, 03 November 2005 17:28

IT Industry - Deals

Pacific Internet (Australia) Pty Ltd, a subsidiary of Singapore based region ISP, NASDAQ-listed Pacific Internet Limited, is to acquire T3 Communication Partners Pty Ltd and all its subsidiaries for up to $5 million

Pacific Internet will pay $3 million upfront and up to $2 million over the next 12 months. T3's core business is providing fixed line telephony services to small-to medium sized businesses. The privately owned company commenced operations in 2002 and, according to Pacific Internet, has consistently recorded strong revenue and profit growth. Turnover in FY 2005 was in excess $12.7 million.

Pacific Internet Australia's managing director, Dennis Muscat, said: "With the acquisition of T3 Communications, Pacific Internet has strengthened its position as a leading Australian communications provider that can bundle telephony and broadband for SMBs. T3 Communications is a successful business that will be gradually integrated into Pacific Internet's operations. We plan to keep all staff and the Sydney office will remain operational."

In March of this year, Pacific Internet entered into an agreement with ASX listed Orion Telecommunications, which provides resold telephony services under the Southern Cross and Orion brands. At the company's AGM on 31 October, chairman Ian Roberts flagged the deal as one of the highlights of the company's year, saying: "Key developments included the successful implementation of a strategic partnership with Pacific Internet, creating opportunities for both companies to expand their product offerings and create bundling opportunities."

ITWire was not able at press time to obtain any information on the impact of the T3 acquisition on this deal.