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merger and acquisitions

Consolidation continues as Vocus acquires Nextgen

Vocus Communications has acquired major telecommunications network owner Nextgen in a move that marks the latest – and for a while perhaps the last – major consolidation move in the industry. 

Vocus has grown rapidly since it was established in 2008 having acquired both second tier telco M2 and Perth-based Amcom in 2015. The $861 million Nextgen deal represents a further leap forward, giving Vocus 17,000 kms of fibre connecting all state capitals except Hobart as well as a number of regional centres including Cairns and Port Hedland. 

Vocus will also acquire NextGen’s half stake in the Australia Singapore Cable development and its interest in the North West Cable system project which is building a 2000-kilometre undersea cable from Darwin to Port Hedland to service Liquified Natural Gas rigs on the north west shelf. 

The buy up of NextGen positions Vocus to be the fourth major player in the emerging NBN world along with Telstra, Optus and TPG, giving it access to 116 of the 121 NBN Points of Interconnection. 

Vocus founder James Spencely says that once the deal is completed Vocus’ network will be second only to Telstra’s in terms of reach, enabling it to be a major backhaul provider as well as strengthening its ability to service its corporate customers.

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