Telstra completes acquisition of Pacnet
Telstra has completed its acquisition of Pacnet, Asia’s largest privately-owned subsea cable network, and plans to retire the brand.
Pacnet will be integrated into Telstra and the Pacnet brand will be “progressively retired,” said Brendon Riley, Telstra group executive of global enterprise and services.
Telstra has finalised all regulatory and financier approvals – with the exception of a remaining regulatory approval in the US – and will proceed with plans to integrate Pacnet into the company.
In addition, Telstra will continue the development of its joint venture in China and US assets will be integrated upon regulatory approval.
“The addition of Pacnet’s staff, infrastructure, technology and expertise will position Telstra as a leading provider of services to multinational and large companies in Asia,” Riley said.
”The completed acquisition will double Telstra’s customers in Asia, and greatly increase our network reach and data centre capabilities across the region,” he added.
In December 2014, Telstra announced it had entered into an agreement to purchase Pacnet in a deal worth $697 million. The agreement would significant expand Telstra’s operations in Asia, with Pacnet operating in 11 countries across Asia, Australia and the US.
The deal will also give Telstra access to 109 PoPs in the Asia-Pacific across 61 cities, as well as eight cities outside of the region in the US and Europe.
Telstra will refinance Pacnet’s outstanding debt, being repayment of Pacnet bank debt and the redemption of its existing $350 million high-yield notes.