Vocus to buy Australia’s Nextgen Networks
In this article (5)
A substantial chunk of fiber is changing hands down under. Vocus Communications has announced plans to acquire Netgen Networks in a deal worth about $500 million.
Nextgen had built a 17,000km fiber backbone across Australia with fiber into 1,100 buildings including 70 data centers.
They were also a 50% owner with Vocus on the ACS project building a subsea cable between Perth, Singapore, and Indonesia, which Vocus will take 100% possession of. And they were building the North West Cable system between Darwin and Port Hedland to the oil, gas, and mining industries as well, which will also be bought by Vocus.
The deal, which follows their recent purchase of M2, will see Vocus add substantial infrastructure muscle in an effort to better compete with Telstra, Optus, and TPG.
Vocus already has some 700km of fiber hooking up 1,300 buildings in Australia, as well as a more extensive 4,200km of fiber over in New Zealand.
Questions & Answers
Q.What is the total cost of Vocus Communications' acquisition of Nextgen Networks?
What is the total cost of Vocus Communications' acquisition of Nextgen Networks?
Vocus Communications plans to acquire Nextgen Networks in a deal worth approximately $500 million. This substantial transaction will transfer ownership of Nextgen's extensive fiber assets to Vocus.
Q.Which specific infrastructure projects will Vocus gain full control over as part of this deal?
Which specific infrastructure projects will Vocus gain full control over as part of this deal?
Vocus will take 100% possession of the ACS project, building a subsea cable between Perth, Singapore, and Indonesia. They will also acquire the North West Cable system, currently under construction between Darwin and Port Hedland.
Q.How much fiber infrastructure did Nextgen Networks already have in Australia?
How much fiber infrastructure did Nextgen Networks already have in Australia?
Nextgen Networks had built a 17,000km fiber backbone across Australia. This infrastructure connected to 1,100 buildings, including 70 data centers, providing a significant network reach.
Q.What is Vocus's strategic reason for acquiring Nextgen Networks?
What is Vocus's strategic reason for acquiring Nextgen Networks?
Vocus aims to add substantial infrastructure muscle through this acquisition. This move is intended to enhance their ability to compete more effectively with established providers such as Telstra, Optus, and TPG in the Australian market.
Reader pulse
Is Vocus's acquisition of Nextgen a smart strategic move?
17,655 votes so far