Vocus Acquisition of FX: Good for Customers?
Consolidation is happening in the New Zealand wholesale ISP market, with Vocus acquiring FX. Consolidation can lead to less competition, or it can strengthen it, by making players stronger and more viable. This acquisition should strengthen the market, and hopefully open up new service offerings.
In July Vocus Communications announced its intention to acquire FX Networks. From the press release:
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 has their own fibre network around Australia, and has a significant international network, with high-level peering. In 2012 they purchased Maxnet, a New Zealand ISP and Data Center Continue reading



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