Australian fibre network and datacentre company Vocus has announced it will buy out FX Networks for AU$107.7 million.
The deal had been rumoured since Monday, when Vocus entered into a trading halt, and today Vocus confirmed it had agreed with FX Networks shareholders to acquire 100 percent of the company for NZ$115.8 million or AU$107.7 million.
FX Networks has 365 customers, and 4,132 kilmetres of ducted fibre on the north and south islands of New Zealand.
The company has 113 employees as of March last year, and in the 2013 financial year recorded a loss of AU$2.2 million.
Vocus said it expects FX to deliver earnings before interest, taxation, depreciation and amortisation or between NZ$13.5 million and NZ$14.5 million in the first 12 months after the acquistion.
Vocus, and today CEO James Spenceley said that FX's fibre network would help expand Vocus' operations in the country.
"FX has built an excellent fibre asset reaching all major population centres across New Zealand. There exists an exciting opportunity in New Zealand to mirror the success we have had in Australia as the only integrated provider of fibre, internet, and data centres," he said in a statement.
"The FX acquisition adds the missing fibre piece to our existing data centre and internet investment in New Zealand."
The buyout will be funded by cash holdings, a debt facility with the Commonwealth Bank, and Vocus scrip issued to shareholders. The current FX shareholders can choose to take a combination of shares or cash up to NZ$20.5 million.
The takeover is expected to be finalised in the second quarter of 2015.