TeamTalk buys Auckland mobile radio networks

26 October 2005

TeamTalk buys Auckland mobile radio networks.

Listed mobile radio operator TeamTalk has purchased the mobile radio assets of MCS Networks (MCS) for $1.9M.

The sale includes MCS’s EDACS digital mobile radio network covering Auckland and the upper North Island. Included in the deal is property worth approximately $400,000 which will be sold, bringing the net cost to closer to $1.5 million.

TeamTalk Managing Director David Ware said he was pleased to be able to announce the deal.

“Mobile radio is a niche technology, and this EDACS technology fills a niche within our niche. The EDACS purchase will add another string to our bow,” Mr Ware said.

“I’m looking forward to welcoming on board MCS’s customers.
TeamTalk already has the largest team of dedicated mobile radio engineers and technicians in the country so I’m certain MCS customers will appreciate becoming part of the family,” said Mr Ware.

Once integrated, the new networks are expected to contribute revenue of approximately $600,000pa to TeamTalk’s overall revenue of around $20 million.

Mr Ware said TeamTalk will fund the purchase from cash-flow.

ENDS

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