Amcom Telecommunications acquires Megaport’s fibre network for $15m

Acquistion includes 180 kilometres of fibre assets in Melbourne, Sydney and Brisbane

Perth-based Amcom Telecommunications (ASX: AMM) has acquired Megaport’s fibre network in Melbourne, Sydney and Brisbane for $15 million.

The network includes 180 kilometres of fibre which runs through 17,000 buildings in the central business districts of the three cities. The fibre network also connects 30 data centres and approximately 30 National Broadband Network (NBN) points of interconnect (POIs).

According to Amcom Telecommunications CEO Clive Stein, the time was right to expand into the Australian market with a national infrastructure footprint on the east coast.

The company is now planning to roll out network infrastructure to 30 exchanges in Melbourne, Sydney and Brisbane to enable Ethernet in the First Mile (EFM). Customers will be able to connect to EFM from Q1, 2015.

“We have successfully deployed EFM in Perth and it has provided us with speed to market ahead of fibre rollout, as well as a cost effective platform to win new business customers,” Stein said in a statement.

Megaport executive chairman Bevan Slattery said the transaction would accelerate Amcom Telecommunications’ east coast expansion while providing Megaport and its fibre infrastructure subsidiary, Superloop, with long-term access to fibre infrastructure. The long-term access will come via a lease back agreement with Amcom Telecommunications.

Slattery added that Superloop’s Australian network will go live in January 2015. It will offer customers a dark fibre connection to a number of data centres including Equinix facilities in Sydney and Melbourne and NEXTDC data centres in Brisbane, Sydney and Melbourne.

In addition to the fibre network acquisition, Amcom Telecommunication has signed a 15-year fibre access agreement with Sydney-based network owner FirstPath.

“This is a significant increase in Amcom’s network reach which will provide immediate access to 200 CBD buildings in Sydney,” said Stein.

In October 2014, Vocus Communications (ASX: VOC) announced it had taken a 10 per cent interest in Amcom Telecommunications as it looked to potentially combine the two businesses.

At the time, Vocus Communications CEO James Spenceley said the company approached Amcom Telecommunications’ board of directors to gauge their interest about bringing the two companies together.

If it goes ahead, Amcom Telecommunications shareholders will receive Vocus Communications scrip or credit for their shares in Amcom.

Stein said today that Amcom Telecommunications is continuing discussions with Vocus Communications about the proposal.

“There remains no certainty that these discussions will result in a transaction. Amcom will continue to update its shareholders when it is in a position to do so,” he said.

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