While in the US fiber network consolidation has moved into later stages, abroad there is still plenty of room left to run. Late last week a bit more of it happened down under, as Australia's Vocus Communications announced an agreement to purchase Ipera Communications.
With the deal, Vocus adds 55km of metro fiber in the Newcastle metro area, which lies about 100 miles northeast of Sydney along the coast. That's not that much fiber, but it hooks up some 81 on-net buildings so it's pretty densely built out.
The purchase price of A$9.8M will be paid with 75% cash and 25% stock, with half paid now and half subject to a 12 month earn out. The contribution to fiscal 2014 EBITDA is expected to be A$2.3-2.5M - presumably including synergies derived, suggesting an attractive multiple for the assets although we don't have all the details.
Vocus got into the metro fiber business back in 2011 with the purchase of some of the assets of Digital River, and it has combined metro fiber with its main data center, interconnectivity, and international transit services. They currently offer dark fiber in the Adelaide, Brisbane, Melbourne, Perth and Sydney markets.
Other Australian fiber has been on the move lately. PTGi sold its Australian division to M2 earlier this year for A$192M, and Nextgen Networks national infrastructure is widely believed to be for sale. And last year, iiNet bought TransACT for $60M and Internode for A$105M.
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