Vocus Communications completes acquisition of Nextgen Networks

The telco has finalised its $807m Nextgen purchase and will now focus on integrating the strategic fibre assets acquired.

Geoff Horth, CEO of Vocus. Vocus Communications has announced that it has completed its acquisition of Nextgen Networks for $807m. (Hollie Adams/The Australian)

Vocus Communications has completed the acquisition of Nextgen Networks, the strategic asset that was at the heart of recent boardroom stoush at the telco.

The $807 million buy leaves Vocus (VOC) with an immediate task of integrating Nextgen, the North West Cable System (NWCS) development project and the Australia Singapore Cable (ASC) development project

Vocus made the play for Nextgen in June, with chief executive Geoff Horth hailing the move as a game changer for the telco.

“Nextgen Networks delivers Vocus one of Australia’s largest national fibre backhaul networks, complementing Vocus’ existing fibre infrastructure,” Mr Horth said.

“The acquisition will connect Vocus’ metropolitan fibre infrastructure to Nextgen Networks’ inter-capital fibre network, creating a national network connecting capital cities, regional and remote areas — owned and managed by the Vocus team.”

Nextgen Networks is one of Australia’s largest national fibre backhaul networks covering around 17,000km and connecting capital cities to regional and remote areas.

While Nextgen’s strategic importance is not in doubt, the recent fracas at Vocus’s boardroom, that led to the departure of Vocus founder and director James Spenceley and board member Tony Grist, was provoked by doubts around the ability of the current leadership to successfully integrate the assets.

Mr Grist, who pushed to install Mr Spenceley in a more serious role, said that Vocus needed someone at the helm with a better understanding of the infrastructure side of the business.

With the boardroom tensions contained for the moment, Vocus chairman David Spence said that the telco will look to allay any concerns around prompt integration.

“On behalf of the board, I would like to thank all shareholders once again for supporting the strategic rationale of the transaction through their participation in the rights issue and placement successfully completed in July,” Mr Spence said.

“We will ensure that we move quickly to integrate the business within the Vocus platform and ensure a seamless transition for Nextgen’s customers.”