The agreement, subject to regulatory approval, would see Vocus acquire TPG’s fibre network infrastructure, Enterprise, Government, and Wholesale (EG&W) fixed business, IT assets, and subsea cables.
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Under the terms of the agreement, Vocus and TPG will enter a long-term strategic partnership, with the latter providing access to Vocus’ fibre infrastructure.
Once the deal closes, Vocus will have access to a fibre network spanning more than 50,000km and nearly 15,000km of international submarine cables.
Included in the deal is TPG’s PPC-1 submarine cable which runs from Sydney to Guam, which will complement Vocus’ existing Australia-Singapore Cable, North-West Cable system, Darwin-Jakarta-Singapore Cable system, and the in-progress Pacific Connect cable system.
Also covered are TPG’s Vision Network wholesale residential broadband assets which cover capital cities across Asia Pacific, including Ballarat, Mildura, and Geelong.
Vocus and its shareholders Macquarie Asset Management and Aware Super said the agreement to buy TPG’s assets would enable it to provide highly valued services to its customers.
“This agreement is transformative for Vocus and is an important step towards creating a more competitive landscape for the Australian telecommunications industry,” said Jarrod Nink, interim CEO at Vocus.
Vocus initially bid around US$4.2 billion last August for some of TPG Telecom’s non-fibre assets, with talks between the two companies ongoing for the past 12 months.
“Today’s agreement builds on our 2022 merger of Vocus’ New Zealand’s operations with 2degrees, which successfully created New Zealand’s third-largest integrated telecommunications company and has driven competition in that market,” said Ani Satchcroft, co-head of infrastructure for Asia Pacific at MAM.
