Australian operator Telstra has announced it would acquire Asian telecommunications and services provider Asian communications provider Pacnet for USD 679 million. The Pacnet acquisition includes interests in its China joint venture, PBS, which is licensed to operate a domestic internet protocol virtual private network and provide data centre services in China. The acquisition is subject to completion adjustments. The transaction is subject to regulatory and Pacnet financier approvals and is expected to complete by mid-2015.
Pacnet gives Telstra ownership of software defined networking, an expanded data centre network, more submarine cables and major customers across the region. Following the completion of the acquisition, Telstra’s GES business in Asia would almost double in size and it is expected to drive operational and cost synergies.
Pacnet reported revenues of USD 472 million and EBITDA of USD 111 million in the year ended December 2013.