Telstra (ASX: TLS) today announced that it had completed the acquisition of network-as-a-service provider Pacnet.
Announced by Telstra on 23 December, the acquisition of the Singapore and Hong Kong headquartered Pacnet 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 most major provinces in China. The acquisition includes 29 data centres, 109 points of presence (PoPs) and over 46,000 kilometres of submarine cable between Asia and the United States
Pacnet has 815 employees spread across 25 offices in APAC.
The US$697 million acquisition was subject to completion adjustments. Competition of the acquisition of Pacent’s US assets is expected in due course.
Telstra group executive, global enterprise and services Brendon Riley said the Pacnet brand would be progressively retired.
He added that the addition of Pacnet’s staff, infrastructure and technology will position Telstra as a “leading provider” of services to companies in Asia.
Telstra CEO David Thodey last year said the acquisition was aligned to Telstra’s growth strategy and was a significant step for Telstra as it continued to expand the business beyond Australia.
“Pacnet increases the scale and scope of our assets which can be used as a platform for Telstra to scale and expand leading solutions such as unified cloud, unified communications, managed network services and security services," the CEO said.
“Our strategy is centred on serving enterprise and carrier customers doing business in Asia. We serve these customers by leveraging our strong connectivity foundation to offer a portfolio of integrated network applications and services solutions,” he said.
In the year ended December 2013 Pacnet generated revenues of US$472m and earnings before interest, tax, depreciation and amortisation (EBITDA) of US$111m.
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