M2 MD: Return Commander SMB to its "former glory"

Recently, M2 Telecommunications announced it has proceeded with a $19 million Asset Sale Deed for Commander's assets, including; all SMB customer contracts; the Commander brand; all proprietary operating systems, software, plant and equipment (excluding network infrastructure); and selected inventories.

M2 will also take on a number of employees on completion of the sale and intends to maintain the integrator's Adelaide-based customer operations centre, said Vaughen Bowen, CEO at M2.

"It's not too much of a broken business and the SMB division was a core part of the Commander brand and it still retains a solid reputation," he said.

"It hasn't been tarnished like the capital side of the business.

"Customers like the real estate agent out in the suburbs aren't as concerned with its public trading as shareholders that have lost money."

The sale ends a prolonged period of uncertainty for the integrator's SMB division, which had been up for grabs since McGrath Nicol was appointed as receivers and managers in August 2008.

Vaughan told CRN Commander still remains one of the strongest and most recognised brand names in the SMB segment of the market.

"From a financial perspective, the contribution of Commander to M2 Group earnings and EPS is expected to be very significant in the initial year.

"We expect earnings to improve further in subsequent years.

Vaughan was adamant the deal wasn't a diversion for M2, with Commander SMB a good fit for the telco provider.

"Commander was known for its phone systems and as a telco service provider we can add to that with products it previously couldn't because its momentum has been put on hold with its problems," he said.

"Once the business has been brought into the fold and the administration refreshed it will be a logical compliment to M2's retail division."

Vaughan said M2 has been in discussion with Nicol, over the deal, for a couple of months.

"We've always been interested in Commander SMB however but we didn't envisage the division being sold without its network," he said.

"We weren't interested in the network or becoming network operators, but we got talking to McGrath Nicol, after buying another one of Commander's divisions and we learnt it was possible to separate the network."

He told CRN M2 wants to take Commander SMB back to its former glory.