AMCOM Telecommunications has accepted an offer to be bought out by data centre and telecommunications provider Vocus, in a deal that values the west coast telco at $635 million.
Both telcos entered into a trading halt this afternoon pending an announcement of the deal.
Banking sources have indicated to The Australian that Vocus Communications’ offer — which was first made in late October — will value Amcom (AMM) at about $2.40 a share.
Prior to the approach from Vocus (VOC) on October 28, Amcom was trading at $2.09.
Together the telcos will create a merged unit with a market cap worth $1.2 billion.
Perth-based Amcom has been locked in merger talks with east coast-based Vocus since late October, when Vocus chief James Spenceley increased his stake in the telco to 10 per cent.
That grab came with a proposal from Mr Spenceley to merge the two companies in a full scrip deal. In such a proposal, Amcom shareholders would exchange all their stock for shares in Vocus.
Amcom and Vocus sell cloud and telecommunication services to enterprise, government and corporate clients, but in different parts of Australia.
A merger between the two would create the third-largest provider of corporate and office telecommunications in Australia, after Telstra and Optus.
Shareholders in both Amcom and Vocus are believed to be backing the merger proposal.
Since Vocus’s proposal was made public late last month, shares in Amcom have surged more than 25 per cent.
