By Daniel Palmer, Delimiter.com
Vocus Communications has announced the acquisition of Nextgen Networks, along with two undersea cable projects, the North West Cable System (NWCS) and Australia Singapore Cable (ASC).
The deal will set the firm back A$861 million via an A$807 million up-front payment, with a deferred amount of up to A$54 million.
According to Vocus’ breakdown, Nextgen Networks accounts for AU$700 million of that total, while NWCS is costing AU$134 million and the ASC just AU$27 million.
The firm explained that it will fund the purchase via a fully underwritten equity capital raising, which will raise around A$452 million via a 1-to-8.90 entitlement offer to existing shareholders. Additionally, an institutional placement of up to around 26.5 million shares is expected to raise approximately A$200 million.
The balance is to be funded via “existing committed debt facilities”, Vocus said in a statement.
The deal is subject to ACCC clearance and other conditions, and is expected to completed in around three months.
“The acquisition of Nextgen Networks, one of Australia’s largest national fibre backhaul networks, greatly enhances Vocus’ existing infrastructure network,” said Vocus CEO Geoff Horth.