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
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.