ASG Group (ASX: ASZ) has announced plans to sell its Perth data centre to Vocus Communications (ASX: VOC) for $11.7 million.
In a statement released to the ASX, ASG Group CEO Geoff Lewis said the board had identified the Perth facility as a “non-core asset".
“While important to the workings of the Group, it was recognised that the data centre would be better in the hands of partner for whom data centres were core to their business. Vocus Communications is a leading telecommunications provider with extensive experience in operating data centres,” said Lewis.
ASG Group will remain as a tenant in the Perth data centre so that it can provide hosting services to its managed services clients. As part of the deal, Vocus Communications will become a preferred supplier to ASG Group for telco services in Australia.
Through the sale of the facility, the company is forecasting a net debt target of less than $10 million for the financial year 2015.
ASG Group entered a trading halt earlier today.
Vocus Communications CEO James Spenceley said the facility is located in Bentley Technology Park, just 4 kilometres away from its Perth data centre.
“The acquisition continues our investment in Perth and provides Vocus with additional resources to serve the fast-growing Western Australia market. We look forward to a long, mutually beneficial relationship with ASG for many years to come,” he said in a statement.
In July 2014, Vocus Communications acquired New Zealand-based fibre provider FX Networks for $107.7 million (NZ$115.8 million).
The FX Networks business is expected to deliver between NZ$13.5 to $14.5 million of Vocus’ earnings before interest, depreciation and amortisation (EBITDA) in the first year following acquisition.
Follow Hamish Barwick on Twitter: @HamishBarwick