Feeds

Telstra flogs phone books to Platinum Equity

Seventy per cent of a dead tree worth $AU450M

Internet Security Threat Report 2014

Mere days after Telstra was rumoured to be selling its Sensis directory division for “as much as $AU3 billion” the carrier has closed the deal for the fire-sale price of $AU450 million.

The sale puts 70 per cent of Sensis in the hands of US private equity firm Platinum Equity – putting a total valuation on the division at around $AU643 million, a little over one-fifth the number that was so sweatily speculated upon as late as January 10.

Among its many deals, Platinum Equity has been the white knight for CheckPoint Systems, and late last year, it acquired 51 per cent of Emerson Network Power's embedded systems business.

The Sydney Morning Herald says the sale will be subject to scrutiny from the Communications Minister Malcolm Turnbull, to ensure it continues to meet its obligation to distribute printed directories.

Since a peak in 2009 of $AU2.25 billion, Sensis' revenue has collapsed, shedding more than a billion dollars annually.

Telstra will retain ownership of its voice directory services business.

In its announcement, Telstra states that “The transaction price is equal to a multiple of 2.4 times Sensis’ FY14 forecast EBITDA after adjusting for the voice directories business (which is being retained by Telstra) and stand alone costs of operating the business. This is consistent with valuations for recent directories transactions globally.

“The sale proceeds of A$454million are incremental to Telstra’s FY14 free cashflow guidance of A$4.6billion to A$5.1billion. Telstra expects to book an accounting loss on Sensis of approximately A$150million subject to completion timing and adjustments. Approximately A$100million is expected to be included in the December 2013 half year results with the balance accounted for on completion, which is expected in the second half of FY14.” ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.