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Telus to acquire Adcom

Telecommunications giant Telus announced it has signed a definitive agreement to acquire Adcom, Inc., one of the largest videoconferencing companies in Canada. The transaction value is in the neighborhood of $15 million.

Through the acquisition, Telus gains 84 Adcom employees, a new customer base, as well as the company’s multi-site operations and state-of-the-art equipment. The company is involved in many telehealth projects across Canada.

Adcom recorded $24.7 million revenue in 2004. Headquartered in Toronto, Adcom has offices in Calgary, Edmonton, Ottawa, Montreal and Halifax.

“Acquiring Adcom is another step in the ongoing advancement of Telus’ national data and IP growth strategy,” said Joe Natale, president, Telus Business Solutions. “Adcom’s reputation as Canada’s videoconferencing leader provides Telus with overnight strength in an important market. We plan to leverage Adcom’s expertise, relationships and customer base to strengthen our existing videoconferencing capabilities and enhance the data and IP solutions we offer our customers.”

Many organizations are seeking greater productivity and reduced costs through the use of Internet Protocol (IP) technology and transforming enterprise communications to a real time environment. The enhanced offering enabled by uniting Telus and Adcom will transform video, web, audio and streaming technologies into an easy to use essential business communication tool, according to a news release.

The combined companies will deliver solutions including collaboration infrastructure devices, software, network, and managed services.

Telus was the first North American company to transform its circuit-based network to an IP-based network, and has been a leader in introducing and applying IP technologies and applications for business. Building on the advantages of its IP-based Next Generation Network, the addition of leading edge videoconferencing capabilities expands the potential of IP products and services available to business customers looking to gain a competitive advantage.

“Telus and Adcom have a shared vision of significant opportunity in the broadband enabled communication and collaboration world,” Peter McDonnell, CEO of Adcom said. “I believe that Canadians will benefit from the resources and capabilities of our combined companies, which will enable us to offer a very broad spectrum of collaboration solutions.”

The transaction is structured as a share purchase, consideration being on an all cash basis. Ernst & Young Orenda Corporate Finance Inc. acted as the exclusive financial advisor to Adcom.

Telus is the largest telecommunications company in Western Canada and the second largest in the country, with $7.5 billion of annual revenue, 4.8 million network access lines and 3.8 million wireless customers. The company provides customers with a full range of telecommunications products and services including data, voice and wireless services across Canada, utilizing next generation Internet-based technologies.