Vocus proposes to acquire FX Networks
- 02 July, 2014 09:59
Vocus Communications has announced it has entered into agreements with the shareholders of FX Networks Limited to acquire 100 per cent of the issued capital of the New Zealand fibre provider.
FX owns a high quality fibre optic network consisting of 4,132 kilometres of modern ducted fibre cable covering both the North and South Islands.
The company has 365 customers including 43 of the Top 100 companies in New Zealand.
Vocus says it will acquire FX for an enterprise value of NZ$115.8 million. The FX business is expected to deliver up to $14.5 million of EBITDA in the first 12 months post acquisition (excluding transaction and integration expenses).
The combination of Vocus and FX strengthens both businesses. Vocus will emerge as the third largest network operator in NZ and the clear leader in trans-Tasman telecommunications and data centres.
“FX has built an excellent fibre asset reaching all major population centres across New Zealand," said Vocus CEO James Spenceley. "There exists an exciting opportunity in New Zealand to mirror the success we have had in Australia as the only integrated provider of fibre, Internet and data centres. The FX acquisition adds the missing fibre piece to our existing data centre and Internet investment in New Zealand.”
“This transaction allows FX to move to the next phase of its corporate development," said FX CEO David Heald. "We have fundamentally completed the build of New Zealand’s most modern fibre network. The addition of Vocus’ financial strength and other NZ assets together with a shared culture focused on delivering exceptional outcomes to customers, means this transaction will give a positive outcome for both shareholders and customers alike”.