here it isM2M acquires Hitech Telecom,...

here it is

M2M acquires Hitech Telecom, Pennytel

Telecommunications investor M2M has entered acquisition agreements to obtain 100% of Hitech

Telecom and subsidiary company PennyTel. The deal is expected to bring $15 million per annum in

revenue to M2M, as well as positive EBITDA contributions. Both Hitech and PennyTel have been

profitable since 2001 and M2M hopes to see immediate positive bottom line results.



M2M’s primary telecommunications focus is through subsidiary group Whizfone, which has a

range of business offerings including wholesale and retail VoIP services. According to M2M, Hitech’s

business will “double the size of Whizfone’s wholesale telecommunication business and expand

the existing infrastructure by threefold.” M2M claims that this will speed up the company’s

progression to its stated goal of becoming a “junior telecommunications company in Asia.”



PennyTel’s consumer and business VoIP offerings will be folded into the Whizfone VoIP base,

adding 10,000 paying VoIP subscribers and 31,000 registered users. Whizfone plans to aggressively

market the PennyTel product once acquired, and claims that the current growth of 65% compounded

quarter on quarter will grow “substantially.” ( I bolded this lol)



M2M CEO Michael So said “this is a significant and important acquisition for the M2M group in

that Hitech and PennyTel complement both our businesses so perfectly. Our business models are

similar and complementary in every way. Hitech and PennyTel’s businesses will now strengthen

Whizfone’s wholesale and retail businesses substantially, and Whizfone will provide a much

broader market reach to both Hitech and PennyTel to grow their businesses even further.” HiTech

and PennyTel have presence in Australia, Hong Kong, Singapore, Malaysia, and the US.



“This acquisition will not only double the exceptional growth we are seeing in our wholesale

business, but also turn our retail VoIP business into a high growth profit generating business unit,”

said So. PennyTel has stated an aim of being the number one VoIP provider in the Asia Pacific region,

and claims that the deal will allow it to “realise this milestone much sooner than ever expected.”

Luke Coleman