Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Vocus agrees to buy FX Networks for $115.8M including debt

Vocus agrees to buy FX Networks for $115.8M including debt, paying cash, shares

By Jonathan Underhill

July 2 (BusinessDesk) - Vocus Communications, the ASX-listed telecommunications company, agreed to buy FX Networks for $115.8 million including debt, gaining a New Zealand fibre optic cable network operator it says will add to earnings in its first year. Vocus shares jumped to a record on the ASX.

Vocus will pay $62 million, with up to 33 percent paid in cash and the balance in new Vocus shares, and assume $53.7 million of debt, the company said in a statement to the ASX. That would see it issue between 8.8 million and 13.1 million Vocus shares at a price of A$4.40 apiece.

Based on results for calendar 2013, the acquisition would have more than doubled Vocus's annual revenue to A$136 million and lifted earnings before interest, tax, depreciation and amortisation to A$36.7 million. FX Networks made a net loss of A$900,000 last year because of interest costs from a related party debt, according to a Vocus presentation on the deal.

"There exists an exciting opportunity in New Zealand to mirror the success we have had in Australia as the only integrated provider of fibre, internet and data centres," Vocus chief executive James Spenceley said in a statement. "The FX acquisition adds the missing fibre piece to our existing data centre and internet investment in New Zealand."

Vocus would fund the acquisition through a combination of existing cash, a debt facility with Commonwealth Bank of Australia and Vocus scrip and will end up with about A$40 million of unusued debt facility it may use "to continue to seek growth opportunities."

Shares of Vocus rose about 6 percent to A$5.05 on the ASX, valuing the company at about A$439 million, and have surged 45 percent this year. The shares are rated a 'buy' based on seven analysts polled by Reuters.

FX Networks owns and operates a national inter-city fibre optic network in New Zealand and has more than 3,000 clients, according to its website. The company has laid 4,200 kilometres of fibre and has 29 Tb of national capacity, it says.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news