Vocus to buy NZ's FX Networks for $101m

Dylan Bushell-Embling
04 Jul 2014
00:00
News
Daily News

Australia-based Vocus has arranged to acquire 100% of New Zealand fiber network operator FX Networks for NZ$115.8 million ($101.3 million).

Vocus provides dark fiber, data center and international internet connectivity. It has a presence in Australia, New Zealand, Singapore and the US.

The FX acquisition will allow Vocus to add 4,132km of fiber to its networks across New Zealand.

Announcing the acquisition, Vocus CEO James Spenceley said it will make the company the third largest network operator in New Zealand, and deliver ebitda synergies of up to NZ$14.5 million in the first 12 months post-acquisition.

“FX has built an excellent fiber asset reaching all major population centers across New Zealand. There exists an exciting opportunity in New Zealand to mirror the success we have had in Australia as the only integrated provider of fiber, internet and data centres,” he said.

The FX acquisition adds the missing fiber piece to our existing data center and internet investment in New Zealand.”

The deal is contingent on conditions including shareholder approval, but 77.1% of FX shareholders have already indicated they will accept the offer.

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