Vocus completes Nextgen Networks buyout
- 26 October, 2016 14:53
Vocus Communications has completed its acquisition of Nextgen Networks, the company announced today. The deal with Nextgen Group also included the North West Cable System (NWCS) and the Australia Singapore Cable (ASC) development projects.
“Nextgen Networks delivers Vocus one of Australia’s largest national fibre backhaul networks, complementing Vocus’ existing fibre infrastructure,” Vocus CEO, Geoff Horth, said in a statement.
“The acquisition will connect Vocus’ metropolitan fibre infrastructure to Nextgen Networks’ inter-capital fibre network, creating a national network connecting capital cities, regional and remote areas — owned and managed by the Vocus team.”
The acquisition delivers Nextgen Networks’ 17,000 kilometres of fibre to Vocus, including connections to 70 data centres. Vocus will now have fibre access to more than 5000 buildings (Nextgen runs fibre to 1164 buildings).
A previously mooted post-acquisition capex spend of around $11.5 million will extend Vocus' coverage of NBN Points of Interconnect from 68 to 112 (out of 121 total NBN POIs).
“The acquisition of the North West Cable System (NWCS) project will enable Vocus to increase penetration of the mining and offshore oil and gas sectors,” Horth said. “The cable is now operational, and is underwritten by foundation customers on long-term contracts.
“ASC is a project to build a ~4,600km submarine cable connecting Singapore, Jakarta and Perth. Vocus and Nextgen Group announced a non-binding term sheet in November 2015 to form a 50-50 joint venture to construct and operate the ASC. Vocus now owns 100 per cent of the project and intends to advance this opportunity in its own right.”