Australian operator Vocus is continuing its expansion with the acquisition of Nextgen Group's networks business for up to AUD 807 million. The deal includes Nextgen’s 17,000km national fibre network, offering access to 70 data centres and over 1,100 buildings, as well as the almost‐completed North West Cable system connecting Port Hedland to Darwin and the proposed Perth to Singapore subsea cable, in which Vocus already holds 50 percent. Nextgen will continue to own its data centre business, Metronode, which operates as a separate entity.
The purchase price includes a minimum AUD 780 million for the assets plus up to AUD 27 million conditional on the North West Cable performance. The acquisition will be funded by a share issue, made up of AUD 452 million in a rights offering to existing shareholders and AUD 200 million from institutional investors. The remainder of the purchase price will be funded with debt facilities. Vocus said the deal offers a strong strategic fit with its business and should result in annual cost synergies of around AUD 30 million within three years.
Vocus also updated its outlook, saying it's experienced strong organic growth in the past fiscal year. It expects adjusted EBITDA of AUD 95-100 million for its fiscal fourth quarter and AUD 213-218 million over the full year. Revenue for the year to June is estimated at AUD 213-218 million.
