Telstra has bought Singapore and Hong Kong based-Pacnet for US$697 million (AU$858 million) in a deal which will give it infrastructure, more customers in Asia and a virtual private network and data centre services in China.
Pacnet gives Telstra ownership of an extensive range of services including software defined networking, an expanded data centre network, more submarine cables and major customers across the region.
Telstra CEO David Thodey said the acquisition was aligned to Telstra’s growth strategy and was a significant step to expand the business beyond Australia.
“Asia is an important part of our growth strategy,” he said. “We believe this acquisition will help us become a leading provider of enterprise services to multinational companies and carriers in the region.”
The enterprise services market is evolving rapidly and Pacnet will strengthen Telstra’s networks and capabilities.
“Our strategy is centred on serving enterprise and carrier customers doing business in Asia,” Thodey said. “We serve these customers by leveraging our strong connectivity foundation to offer a portfolio of integrated network applications and services solutions.”
In the year to the end of December 2013 Pacnet generated revenues of US$472 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of US$111 million.
Telstra shares are 0.3% firmer today at $6.02.