Vocus Communications takes stake in Macquarie Telecom

Company is holding the 14.5 per cent stake as a strategic investment says Vocus

Vocus Communications (ASX: VOC) has taken a 14.5 per cent stake in Macquarie Telecom (ASX: MAQ).

According to an ASX statement, Vocus "currently has no intention other than to hold the stake as a strategic investment". The investment is not expected to have a material effect on Vocus’ business and operations or its financial position.

Vocus has acquired the interest in Macquarie Telecom under an equity swap transaction for consideration of $15.619 million, payable on settlement of the swap transaction.

In February Vocus moved to acquire two Enterprise Data Corporation facilities for $23.5 million. The two data centres are in located in Sydney and Melbourne.

That acquisition was preceded in December by Vocus' announcement that it would acquire the remaining 90 per cent of shares in Amcom Telecommunications.

According to an ASX statement issued at the time, the combined businesses would have a market captilisation of $1.1 billion and EBITDA of $100 million in financial year 2015.

Last year Vocus also acquired New Zealand-based fibre provider FX Networks for $107.7 million.

Vocus Communications sharply increased revenue and profits in the first half of 2015, according to financial results released in February.

Vocus reported a $62.7 million revenue in the six months ended 31 December, up nearly 42 per cent from $44.3 million in the same period last year.

In August, Macquarie Telecom reported a net loss of $0.8 million for its full year ending June 30, largely due to increased operating expenses as new data centre facilities go live. EBITDA was $25.5 million for the year, a decrease of $9.6 million on the previous year.

Follow Hamish Barwick on Twitter: @HamishBarwick

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