Australia’s Vocus has entered into a definitive agreement to purchase the fibre and fixed network assets of TPG in a deal valued at US $3.35 billion. This acquisition will boost Vocus’s capabilities in serving enterprise, government, and wholesale sectors across Australia, transforming it into a significant digital infrastructure operator.
Upon completion of this acquisition, Vocus is set to expand its fibre network significantly, adding over 50,000 km of fibre to its portfolio and connecting nearly 20,000 buildings in major Australian cities. Moreover, Vocus will gain access to TPG’s IT assets and international submarine cables, including the PPC-1 line, which links Sydney to Guam. These additions will complement Vocus’s existing infrastructure, including crucial international routes like the Australia Singapore Cable.
President and interim CEO of Vocus, Jarrod Nink, highlighted the transformative nature of the deal: “This agreement is transformative for Vocus and is an important step towards creating a more competitive landscape for the Australian telecommunications industry.”
A long-term strategic partnership between Vocus and TPG will also be established under this deal. This relationship will ensure TPG continues to access Vocus’s fibre infrastructure, maintaining stability in network planning and operations for both companies. Meanwhile, TPG will retain its mobile radio network infrastructure, along with its mobile business for enterprise, government, and wireless segments, ensuring continuity for its existing customer base.
This acquisition is the culmination of discussions that began in July of the previous year. Initial negotiations focused on Vocus acquiring TPG’s non-mobile fibre assets but faltered due to complexities and disagreements over the operating model. However, the dialogue resumed earlier this year, leading to the present agreement.
Regulatory approvals still stand as a final checkpoint for the transaction. Once obtained, Vocus will begin the integration of TPG’s assets into its operations, enhancing its service offerings and market reach.
