Australian operator Telstra has agreed to acquire Asian telecommunications and services provider Pacnet for USD 697 million. The Pacnet acquisition includes interests in its China joint venture, PBS, which is licensed to operate a domestic IP VPN and data centre services in China. 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. Telstra estimates total synergies from the acquisition of around AUD 65 million.
Pacnet reported revenues of USD 472 million and EBITDA of USD 111 million in 2013. Pacnet is headquartered in both Singapore and Hong Kong with approximately 815 employees in 11 countries.
