Vocus completes AUD $5.25 billion deal for TPG fibre network assets

Vocus has completed its acquisition of TPG Telecom's Enterprise, Government and Wholesale fixed business and associated fibre assets for AUD $5.25 billion.

The transaction brings together Vocus' extensive inter-capital and regional fibre infrastructure with TPG Telecom's metropolitan fibre network. This integration expands Vocus' reach in Australia's telecommunications sector, particularly in enterprise, government and wholesale services.

Supported by shareholders Macquarie Asset Management and Aware Super, Vocus will now operate an Australian network comprising more than 50,000 kilometres of owned fibre, close to 15,000 kilometres of global submarine cables, and nearly 20,000 connected buildings. The acquisition also includes the Vision Network's wholesale residential broadband capability, with assets in major cities such as Canberra, Ballarat, Mildura and Geelong.

Vocus' enlarged portfolio will enable it to serve a broad range of enterprise, government and wholesale clients around Australia, as well as support its consumer and NBN wholesale business growth. The company's digital infrastructure assets now provide improved national coverage and scalability for its services portfolio.

Executive perspectives

Andrés Irlando, Chief Executive Officer at Vocus said: "With digital infrastructure driving the modern economy, growth and innovation, this investment gives Vocus the scale and reach to deliver a better and broader suite of products and services, increasing competition in a sector which is critical for Australia's future. Completion of this acquisition also affirms and strengthens Vocus' role as a key digital infrastructure operator in Australia, serving the Enterprise, Government, and Wholesale sector. Customers are the biggest winners in this deal."

Ani Satchcroft, Co-Head of Infrastructure for Asia Pacific at Macquarie Asset Management, commented on the transaction, saying: "This is a transformative moment for Vocus and customers, creating greater coverage for its fibre networks in Australia. Working through the separation of the TPG assets and planning their integration into the Vocus network has been detailed and complex. MAM has been able to leverage its deep digital expertise to help take Vocus' network capability and customer proposition to the next level."

Mark Hector, Head of Infrastructure at Aware Super, addressed the long-term strategy, adding: "This investment marks a significant milestone in Aware Super's infrastructure strategy to invest in high-quality digital infrastructure platforms that not only deliver enduring value to customers and communities, but strong long-term returns for our 1.2 million members. By supporting this acquisition, we're helping to create a more competitive and resilient telecommunications landscape to meet the growing demand for scalable connectivity and innovation across Australia."

Asset integration

The deal grants Vocus ownership of the entire TPG fibre network infrastructure, including the enterprise and government fixed customer base, as well as international submarine cables and wholesale residential broadband business. The addition of the PPC-1 submarine cable from Sydney to Guam strengthens Vocus' connections to the US, complementing its existing Australia Singapore Cable, North-West Cable System, and Darwin-Jakarta-Singapore system.

Vocus will move forward with the integration of teams, assets, products and solutions, with the objective of achieving operational synergies and benefits for customers. The company expects to enhance operational efficiency and support continued sector competition through this process.

TPG Telecom will retain its mobile radio network infrastructure as well as its consumer and small office/home office fixed business. Under a long-term strategic partnership, TPG will also have ongoing access to Vocus' fibre infrastructure, which supports network planning and access certainty for both firms.

With the transaction now complete, Vocus aims to further develop its portfolio to meet the connectivity requirements of government departments, large enterprises and wholesale clients, while maintaining service delivery to residential customers via its expanded fibre and broadband network.