Vocus Communications Limited (ASX:VOC) is pleased to announce it has entered into agreements to acquire the two data centres and business continuity operations of Enterprise Data Corporation (EDC).
This acquisition represents an attractive opportunity to acquire a well-established business with a diverse contracted customer base across two Data Centres (DC) and add complementary Business Continuity Services (BC) to Vocus’ suite of solutions to corporate customers in Australia.
The two Data Centres are located in Norwest in Sydney and Mitcham in Melbourne with both offering capacity for additional growth.
The purchase price is $23.5m and will be funded from existing cash resources. The acquisition is subject to normal conditions and is forecast to generate annualised EBITDA of approximately $4.7m.
Vocus CEO, James Spenceley said, “The acquisition complements our existing business by adding two high quality data centres to the nine Vocus data centres located across Australia and New Zealand. The BC business is a logical service extension to the current range of services offered to data centre customers.”
“The data centres have many long-term customers and will provide Vocus with cross selling opportunities and further redundancy for existing customers.”
Vocus Communications Limited (ASX: VOC) is pleased to announce another record result for the financial year ended 30 June 2014, with underlying net profit after tax up 53% to $13.6m.
- Revenue up 38% to $92.3m
- Underlying EBITDA* up 48% to $33.1m
- Underlying NPAT up 53% to $13.6m
- Statutory NPAT up 154% to $12.9m
- Underlying EPS up 41% to 16.14 cents
- Operating cash flow up 100% to $30.6m
- FY14 total dividend up 80% to 1.8 cents per share, fully franked
The growth in FY2014 was achieved primarily through organic growth, in addition to a full year contribution from Ipera Communications, acquired in January 2013.
The fastest growing revenue segments were Fibre and Ethernet, up 87% and Internet, up 39%. The Fibre network now reaches over 1,000 buildings and Internet traffic grew by 77%.
Given the strong results, a final dividend of 1.0 cents per share, fully franked, will be paid, bringing total dividends for FY2014 to 1.8 cents per share, up 80%.
James Spenceley, CEO, said “This has been a significant year for Vocus. We have delivered another record result which is testament to our clearly developed strategy, aligned to increasing demand for data coupled with cloud computing and increased IT outsourcing trends.
“The recent acquisition of the Bentley Data Centre in Perth, the investment in the SEA-ME-WE 3 cable connecting Perth and Singapore and our upcoming acquisition of New Zealand’s FX Networks positions Vocus as one of the leading integrated fibre, Internet and data centre providers across Australia and New Zealand.”
*Excludes foreign exchange gains and losses, gains on IRU prepayment and acquisition costs
Vocus Communications Limited (ASX: VOC) is pleased to announce it has expanded its data centre presence in Western Australia by entering into an agreement to buy the state of the art Bentley Data Centre from ASX listed IT solutions provider ASG Group Limited (ASX:ASG).
The data centre is located on the fringes of the Perth CBD in the Bentley Technology Park and is approximately 4km from Vocus’ existing Perth data centre. The Bentley Data Centre opened in 2011 and services some of Australia’s largest mining and utilities companies under long term contracts.
ASG is also a tenant of the data centre providing hosting services to their managed services clients. As part of the acquisition, Vocus will become preferred supplier to ASG for all telecommunications services both locally in Perth and across Australia.
The purchase price for the data centre is $11.7m and is funded from existing cash resources. The acquisition is forecast to generate annualised EBITDA of approximately $2.0 million and to be EPS accretive in the first year.
Vocus CEO, James Spenceley said, “The acquisition continues our investment in Perth and provides Vocus with additional resources to serve the fast-growing Western Australia market.
We are delighted to acquire the high quality Bentley Data Centre and secure the preferred supplier relationship with ASG, one of the largest IT solutions providers in Australia.
The Bentley Data Centre has many long-term, blue chip customers and will provide Vocus with additional cross-selling opportunities and further redundancy for existing operations.
We look forward to a long, mutually beneficial relationship with these clients and with ASG for many years to come.”
Creates the leading trans-Tasman Telco
Vocus Communications Limited (ASX: VOC) is pleased to announce it has entered into agreements with the shareholders of FX Networks Limited (FX) to acquire 100% of the issued capital of the New Zealand fibre provider.
FX owns a unique and high quality fibre optic network consisting of 4,132 kms of modern ducted fibre cable covering both the North and South Islands of New Zealand. The company has 365 customers including 43 of the Top 100 companies in New Zealand.
Vocus will acquire FX for an enterprise value of NZ$115.8m (~A$107.7m). The FX business is expected to deliver NZ$13.5-$14.5m of EBITDA in the first 12 months post acquisition (excluding transaction and integration expenses).
The combination of Vocus and FX strengthens both businesses. Vocus will emerge as the third largest network operator in NZ and the clear leader in trans-Tasman telecommunications and data centres.
Vocus CEO, James Spenceley said, “FX has built an excellent fibre asset reaching all major population centres across New Zealand. 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. The FX acquisition adds the missing fibre piece to our existing data centre and Internet investment in New Zealand”.
FX CEO, David Heald said, “This transaction allows FX to move to the next phase of its corporate development. We have fundamentally completed the build of New Zealand’s most modern fibre network. The addition of Vocus’ financial strength and other NZ assets together with a shared culture focused on delivering exceptional outcomes to customers, means this transaction will give a positive outcome for both shareholders and customers alike”.
The acquisition is fully funded funded via current cash holdings, a new multicurrency senior debt facility with the Commonwealth Bank of Australia and Vocus scrip issued to FX shareholders. FX shareholders may accept a combination of shares and/or cash (up to a cap of NZ$20.5m). Depending on acceptances by FX shareholders, Vocus will issue between 8.8m – 13.1m shares issued at A$4.40 per share, a 5% discount to the 5 day VWAP and a 1.3% premium to the 30 day VWAP prior to 30 June 2014.
The structure of the financing will provide Vocus with an additional unused debt facility of circa A$40m to continue to seek growth opportunities.
Vocus has received agreements from 77.1% of FX shareholders indicating they will accept the offer and the transaction is expected to complete early Q2 FY2015.
Formal process and indicative timing
Completion of the FX acquisition will be subject to a number of conditions precedent including (but not limited to):
• Vocus shareholder approval for the purposes of ASX Listing Rule 7.1, to be obtained at an EGM scheduled to be held in late August 2014, with a notice of meeting to be despatched in late July 2014
• Acceptances by more than 90% of FX shareholders of the offer:
• Takeover Offer Document, Target Company Statement and Independent Expert’s Report released in late August 2014
• 50% of the shares issued to FX shareholders being subject to escrow conditions
• Receipt of change of control consents from certain key commercial counterparties
• No event having occurred under Vocus’ funding arrangements which would allow Commonwealth Bank of Australia to withdraw its funding commitment to Vocus
For more information: James Spenceley
Chief Executive Officer
T: 02 8999 8999
About Vocus (ASX:VOC): Vocus Communications is an ASX listed leading telecommunications provider of Data Centre, Dark Fibre and International Internet connectivity across Australia, NZ, Singapore and the US. The company provides high performance, high availability, and highly scalable communications solutions, which allow service providers to quickly and easily deploy new services for their own customer base.
Vocus Communications Limited (ASX:VOC) is pleased to announce that it has been admitted to the S&P ASX 300 Index, effective from the close of trade on March 21, 2014, as part of S&P’s quarterly rebalancing. The S&P/ASX 300 is comprised of the top 300 listed companies in Australia. In order to be eligible for inclusion in any of the S&P/ASX indices, stocks must meet certain criteria regarding listing, size and liquidity.
The admission caps off a strong year for Vocus, having been admitted to the All Ordinaries index (which represents the top 500 companies by market capitalisation) in March 2013.
For more information on (ASX:VOC) read the HY14 Results Presentation