22 May 2012. Vocus Communications Limited (ASX: VOC) today announced it has entered into a binding agreement to acquire Maxnet Limited, a leading New Zealand based Data Centre operator and Cloud provider.
The Maxnet operation is expected to generate approximately NZ$2.0 million in Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) in FY13. The total consideration for the acquisition is NZ$9.5 million, which includes a deferred consideration based on performance.
Maxnet owns and operates one of Auckland’s best known and premier Data Centres located just outside the Auckland CBD in Albany. The acquisition gives Vocus access to a 600 square metre data centre in Auckland providing up to 30 kilowatts of power per rack, as well as a smaller, 50-rack facility in Christchurch with capability of up to four kilowatts per rack. In addition to the Data Centre operations, Maxnet is also one of the leading New Zealand providers of Cloud based services, offering a host of Infrastructure as a Service based (IaaS) products. Maxnet says it does not expect job losses as a result of this deal.
James Spenceley, CEO of Vocus said “The Maxnet acquisition complements Vocus’ strong IP Transit operations in New Zealand. It not only provides Vocus with one of New Zealand’s leading Data Centres but also one of the most established providers of Cloud Services, marking Vocus’ next step into the high growth Cloud market.”
Vocus has primarily expanded its Australian data centre business through acquisition, including purchasing facilities from E3 Networks in Sydney and Melbourne, and from Perth iX in Western Australia.
“We’ve been [in New Zealand] for four years, providing IP transit. We do something like 20 percent of the country’s internet so given our Australian business started in IP transit and moved into data centres, I suppose this is a natural progression for us,” he said to media source IT News. “We’ve been looking at purchasing a data centre here for quite some time.”
Douglas Kemsley, Maxnet’s outgoing Chairman said “This is very good news for Maxnet’s clients and the broader New Zealand marketplace. Our wide range of quality Data Centre and cloud services will be further strengthened by this acquisition. Vocus is the ideal company to take Maxnet to the next level.”
The acquisition will be funded with bank debt and further consolidates Vocus’ position as one of the leading Telecommunications and Data Centre operators in Australia and New Zealand.