Telstra, Wednesday announced that it will be acquiring Pacnet Limited, an Asian provider of connectivity, managed services and data centre services for carriers, multinational corporations and governments, for a sum of US$697 million. The acquisition of the Singapore and Hong Kong headquartered Pacnet includes interests in its China joint venture, PBS, which is licensed to operate a domestic Internet Protocol Virtual Private Network (IP VPN) and provide data centre services in most major provinces in China.
According to Telstra, the acquisition will boost its position in the enterprise market, enabling it to serve more companies and carriers in the APAC region. Pacnet will give them ownership of an extensive range of services including software defined networking, an expanded data centre network, more submarine cables and major customers across the region. The acquisition, said Telstra, is aligned to its strategy to increase its presence and expand its markets beyond Australia.
David Thodey, CEO, Telstra
“Asia is an important part of our growth strategy. We believe this acquisition will help us become a leading provider of enterprise services to multinational companies and carriers in the region. The enterprise services market is evolving rapidly and Pacnet will strengthen our networks; data centres and submarine network as well as boosting our service offerings and people capabilities. Pacnet increases the scale and scope of our assets which can be used as a platform for Telstra to scale and expand leading solutions such as unified cloud, unified communications, managed network services and security services.
Carl Grivner, CEO, Pacnet
The addition of Pacnet’s subsea fibre network, data centre assets, capability in China, and dedicated employee base to Telstra's world-class infrastructure and management will give it the ability to accelerate business growth in the region. There is a tremendous opportunity for this combination to address the growing demand for services throughout the Asia-Pacific region and provide superior solutions and service to customers
