Telstra to buy Pacnet for $697 millionStaff writer ▼ | December 30, 2014
Telstra Corporation has entered into a definitive agreement to buy Singapore- and Hong Kong-based internet services company Pacnet for $697 million.
Acquisition Internet services company
"Asia is an important part of our growth strategy," said David Thodey, Telstra chief executive.
"We believe this acquisition will help us become a leading provider of enterprise services to multinational companies and carriers in the region."
Telstra reportedly has designated about A$5 billion for its Asian plans. The company has taken many an expert by surprise, especially if the size of the company is to be considered. The company has of late been making significant investments and growing by leaps and bounds in the region.
Pacnet generated revenues of $472m and earnings of $111m in the year to the end of December 2013. The company owns Asia’s largest submarine cable network and the Trans-Pacific cable system linking Japan and California. ■