SYDNEY (AFP) – Cashed-up Australian telecoms giant Telstra said Tuesday it has agreed to buy Pacnet, Asia’s biggest private owner of submarine communication cables, for US$697 million in one of its largest acquisitions to date.
Pacnet, headquartered in Singapore and Hong Kong, also offers data centre services to carriers, governments and multinationals across the Asia-Pacific. The acquisition, which includes Pacnet’s interests in its China joint venture PBS, is expected to be completed by mid-2015. Telstra chief executive David Thodey said the move was part of his company’s strategy to expand its business beyond Australia. “Asia is an important part of our growth strategy. We believe this acquisition will help us become a leading provider of enterprise services to multinational companies and carriers in the region,” he said.
Pacnet gives Telstra ownership of an extensive range of services including software-defined networking, an expanded data centre network and more submarine cables.