New Zealand operators 2degrees and Orcon Group have reached agreement on a merger, creating the country's third-largest integrated telecommunications operator. They expect the merger will help them better compete across mobile, broadband and energy services.
Macquarie Asset Management and Aware Super, the owners of Vocus Group and its New Zealand subsidiary Orcon, agreed to acquire all of mobile operator 2degress through a newly established entity from Trilogy International Partners and Tesbrit. Trilogy owns 73.17 percent of the equity in 2degrees and first announced discussions with Macquarie and Aware Super on the merger in October 2021.
According to Trilogy, the deal gives 2degrees an enterprise value of NZD 1.70 billion, including leases. This represents an EBITDA multiple of 8.9x based on results for the 12 months to September 2021. On a cash- and debt-free basis, the purchase price for 2degrees shares represents an equity value of NZD 1.315 billion.
The combined company would serve more than 1.5 million mobile customers and 345,000 fixed line customers across 1,800 mobile cell sites and 4,600 km of fibre and provide network coverage to 98.5 percent of the places Kiwis live and work.
The acquisition is expected to complete in the first half of 2022, subject to regulatory approvals.
