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Clever Comms sells none-core business to M2 Telecoms

IT Industry - Deals

Clever Communications (ASX: CVA), a provider of fixed broadband wireless services to businesses in major metro areas, is planning to sell those parts of its business that serve customers by reselling wireline and mobile services from other telcos to M2 Telecommunications (ASX: MTU) for $5m.

If the sale goes through, M2's People Telecom subsidiary would acquire all Clever's off-net fixed, mobile, data and virtual private network customer contracts and all property, plant and equipment required to service the acquired customers.

M2 would also take on the Clever dealer and agent relationships responsible for marketing the acquired services to SMBs and would be licensed to use the 'Clever' brand for a transitional period.

It would also enter into a wholesale agreement with Clever that would enable it to resell Clever's fixed broadband wireless service, - the core business which Clever intends to retain and grow.

M2's managing director and CEO, Vaughan Bowen, said most of the acquired SMB customers would be moved onto M2's own data network, creating economies of scale through greater utilisation.

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