Optus, Australia’s second biggest telco, has announced a takeover bid of AUD$25.9 million for Australian IT services provider Alphawest.

Optus’s CEO Paul O’Sullivan announced it would make a proposal of 68 cents per share and Alphawest’s board has unanimously recommended its shareholders accept the offer.

“This acquisition is part of Optus executing on our growth aspirations as an integrated ICT provider,” O’Sullivan said in a statement.

“It boosts our national presence and complements our areas of existing strength.

Mr O’Sullivan said Alphawest would increase Optus’s ability to offer end-to-end solutions to corporate and government customers.

“Alphawest has excellent credentials in network consulting, integration and information management service; high quality people and processes; and a track record of delivering high levels of customer satisfaction,” O’Sullivan said.

Alphawest chairman Hugh Beggs said the offer has presented the company with an opportunity to enhance its ICT market position.

He has also said he believes it presents good value to shareholders saying the companies are “an excellent fit”.

“The Optus offer represents a substantial premium to Alphawest’s current and recently traded share price,” Mr Beggs said.

“We have partnered extremely well with Optus to date and we welcome the opportunity presented by this offer to enhance our position in the Australian ICT market,” he said.

Optus has already signed a deal with UXC Limited to obtain its almost 20 percent share in Alphawest.

The Optus offer is subject to a condition of 90 percent minimum acceptance by Alphawest shareholders.

If approved, the takeover will place Optus in the top 10 ICT services providers, by revenue, in Australia and will add a third IT services prong to the company, along with Optus's Integrated Business Solutions (IBS) outfit and parent Singtel’s National Computer Systems (NCS). Mr O’Sullivan announced that Alphawest will operate as operate as a wholly-owned subsidary under the Optus Business division.