Vocus confirms FX Networks buyout

3 Jul 2014

As rumoured in CommsUpdate earlier this week, the Australian internet service provider (ISP) Vocus has acquired the New Zealand fibre-optic backbone network operator FX Networks for AUD107 million (USD101 million). The purchase will be funded through a mix of cash, the issue of new Vocus shares to FX Networks shareholders and a loan from the Commonwealth Bank. The acquisition must be cleared at a meeting of FX Networks shareholders next month, although Vocus says it already has a commitment to sell by 77.1% of shareholders. A Vocus statement said: ‘FX Networks’ operations are highly complementary to Vocus’ current operations and will significantly strengthen its presence in New Zealand.’ FX Networks operates around 4,000km of fibre infrastructure across New Zealand. Vocus is already present in the New Zealand internet market, having acquired local ISP Maxnet and its Auckland data centre two years ago.

New Zealand, Vocus New Zealand (incl. Orcon, Slingshot)