News: M2 buys Edirect for $5M

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M2 Telecommunications Group Ltd (ASX:MTU) has announced that it has bought the assets of mobile services reseller, Edirect Pty Ltd for $5 million.

The diversified telecommunication services provider says the principal Edirect assets include active contracts of more than 50,000 post-paid mobile phone customers.

M2 has also inked a deal to buy the operating assets and systems currently used to service the Edirect customer base.

The purchase has been funded out of M2’s operating cash-flow.

Last month M2 upgraded it full 2011 financial year net profit after tax guidance by 20 per cent to $27.3 million.



In the six months to 31 December 2010, M2 reported a record interim net profit of $11.5 million.