Transaction Overview
Transaction
Merger between SP Telemedia and TPG
Date
February 2008
Deal Value
$277 million
PCP Role
Financial Adviser to SP Telemedia
SP Telemedia /TPG Internet Merger
Transaction
Merger between SP Telemedia Limited (“SPT”) and TPG Internet (“TPG”) for a combined value of $277 million.

Scope of Advisory Services
SPT engaged Pitt Capital Partners (“PCP”) as its sole financial advisor in relation to its merger with TPG.

Process
TPG is an internet service provider that at the time of the merger was a large customer of SPT. Prior to the merger; TPG was running an IPO process. However, it was identified that there were significant synergies to be realised by combining SPT and TPG. PCP successfully negotiated a merger between the two companies that was a superior outcome for both companies’ shareholders as these synergy benefits were shared between both parties. As well as managing the deal negotiations, PCP advised on debt structuring and the shareholder approval process.

Outcome
PCP negotiated a successful merger with the combined group which has grown its market capitalisation from $277 million at the time of the merger in 2008 to in excess of $6.0 billion as at March 2015. PCP also secured a $170 million debt funding package below market rates during the GFC, a time when debt funding was difficult to access.