Telecommunications wholesaler, Vocus Communications (ASX:VOC) has entered an agreement with E3 Networks to buy the company’s data centre business in Sydney and Melbourne.
The agreement is worth $5.9 million, with $4.9 million paid in cash and the other $1 million in Vocus shares.
The transaction will add $1.5 million of annualised profit before tax to the company’s bottom line.
The deal covers two existing data centres, with another 400 square meters to come online in Sydney during November.
The acquisition, by the recently listed company, will allow Vocus to provide its customers with data centre space in Sydney and Melbourne where space is at a premium.
In addition to acquiring the data centres, the Sydney and Melbourne E3 teams will join Vocus. E3 founder and CEO, Jon Eaves, is now the data centre division general manager at Vocus.
Vocus chief executive, James Spencely, said in an ASX statement that the acquisition will provide the company with a platform to further data centre expansion.
“E3 and Jon Eaves have a great reputation for building and operating data centres and the combination will attract new customers for data centre space and our core wholesale telecommunications products,” he said.