Leading Australian owned telecommunications carrier Amcom Telecommunications plans to buy the internet protocol communications provider IP Systems for $6.5 million, the company said in a statement to the Australian Stock Exchange.

The deal is now waiting for approvals of both regulators and shareholders.

The deal, as expected, would add to the company's product portfolio for enterprise voice solutions, the company statement said.

Amcom Chief Executive Clive Stein said that the acquisition would provide his company the potential to boost its clients' share of expenditure in the telecommunication services. This would also help the company increase its footprint with an office in every capital city.

Stein believes that the deal will add nearly $12 billion revenue to Amcom's books.

The $6.5 million consideration would include an initial cash payment of $5.3 million by Amcom and $0.30 per share for 4.1 million shares of IP Systems. Any further payments would depend on IP Systems' performance over a time span of three years starting from July 1, 2009 and ending on June 30, 2012.

On approval by the authorities and shareholders, the IP Systems would work as a wholly owned subsidiary of Amcom Telecommunications.