Vocus to buy Nextgen Networks in $700m deal
- 29 June, 2016 10:20
James Spenceley, CEO, Vocus Communications
Vocus has entered into a binding agreement to purchase Nextgen Networks in a deal which will add 17,000 kilometres of fibre cable to the company’s infrastructure portfolio.
Vocus has also agreed to purchase the North West Cable System (NWCS) development project in another deal worth $107 million.
In addition, the company will buy the Australian Singapore Cable (ASC) development project for $27 million, to be paid on commencement of the project.
Vocus has entered into a trading halt on the ASX, which will be in place until the commencement of trading on July 4.
The company has launched a $652 capital raising initiative to facilitate the NWCS deal which adds significant fibre infrastructure to the company’s portfolio. Vocus currently uses Nextgen’s inter-city fibre network.
"Owning this critical this critical infrastructure will allow Vocus to connect its metropolitan infrastructure to Nextgen Networks' inter-capital fibre optic network, thereby connecting mainland capital cities to each other and to regional and remote areas on one owned network," Vocus CEO, Geoff Horth, said.
The equity raising will be facilitated by Credit Suisse and the deal will bring Vocus’ cable assets in line with the likes of Telstra, Optus and TPG Telecom.