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- Release Date: 02/11/12 13:08
- Summary: ASSET: TTK: TeamTalk Sets Sights on Farmside
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TTK
02/11/2012 11:08
ASSET
REL: 1108 HRS TeamTalk Limited
ASSET: TTK: TeamTalk Sets Sights on Farmside
NZX listed company TeamTalk Limited announced today that it has entered into
a conditional sale and purchase agreement to buy 100% of BayCity
Communications Limited. BayCity Communications of Timaru is New Zealand's
leading dedicated rural ISP and telecommunications provider principally
through its Farmside operation.
"At our recent AGM in Wellington I advised shareholders that we were looking
at buying another business. Today's announcement outlines our intention,"
TeamTalk's Managing Director David Ware said.
TeamTalk proposes acquiring 100% of Farmside using cash and shares. The
purchase is conditional on TeamTalk shareholder approval. A special meeting
of TeamTalk shareholders will be held in mid-December with settlement planned
shortly thereafter.
"The purchase is an opportunity to grow both businesses by building on what
each does best. TeamTalk brings its wireless expertise and investment
capital and Farmside brings its satellite business, ISP know how, a rural
focus and consumer marketing capabilities" David Ware said.
"Both TeamTalk and Farmside are strong niche operators in New Zealand's
competitive telecommunications environment."
The upfront purchase price is $31 million with an earn out based on company
performance over the next two financial years. This earn out could raise the
total price paid to $42.05 million. In the 12 months to June 2012, BayCity
had revenue of $25.4 million and EBITDA of $5.8 million.
"TeamTalk is a progressive but cautious business. We have a strong track
record of success based on providing excellent customer satisfaction and
shareholder value," David Ware said. "I'm confident our shareholders will
see value in this acquisition and we look forward to welcoming the Farmside
staff and customers to TeamTalk. We intend to continue to operate the
business from Timaru and expect that it will be very much business as usual
in all respects."
End CA:00229263 For:TTK Type:ASSET Time:2012-11-02 11:08:31
