M2 acquires Dodo for $203m

M2 Telecommunications has announced that it will purchase Dodo and Eftel for $248 million, with $203.9 million for Dodo and $44.1 million for Eftel.

As a result of the takeover, M2 will be one of the biggest carriers in the country, with revenues worth over $1 billion.

M2 chief executive Geoff Horth explained that he is very excited about the acquisitions.

He said: "We are excited to bring Dodo into the M2 Group and are confident that our offer to Eftel shareholders will be well received.

"The acquisitions are an excellent complement to our consumer division and combined, our business possesses an excellent capability to grow our share of both the consumer and small to medium business markets."

Dodo was founded 12 years ago by two directors, Larry Kestelman and Michael Slepoy, originally focusing on telecommunications services. It has since expanded its range of products to include electricity, gas and insurance products.

Launching the utilities options in 2011, principally for Victoria, the services have moved in Queensland, New South Wales, South Australia and the Australian Capital Territory.

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Posted by Eve Gillespie