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Vocus Communications Acquires Metro Ethernet, Dark Fiber Services of Digital River Networks


TMCnews Featured Article

April 15, 2011

Vocus Communications Acquires Metro Ethernet, Dark Fiber Services of Digital River Networks

By Jennifer Russell, TMCnet Copy Editor

Vocus Communications, an Australian telecommunications provider of wholesale data center, voice, peering and international Internet connectivity, has agreed to purchase network operator Digital River (News - Alert) Networks. The deal, worth $3.95 million in cash, is expected to be finalized within the next four weeks subject to certain conditions.

Under the terms of the sale, Vocus will acquire the network operator’s 59 kilometers of dark fiber, situated predominantly in the Melbourne and Sydney CBD areas, as well as all of the customer contracts for the supply of dark fiber and metro Ethernet services.

Formed in 2001, Melbourne-based Digital River Networks is a metro fiber infrastructure developer and supplier of dark fiber for businesses. By 2004, it was serving the growing dark fiber market by rolling out significant fiber networks in Sydney and Melbourne to inter-connect key data centers, and by 2007 expanded its network reach to most mainland capital cities, although not on its own fiber.

In a statement, James Spenceley, Vocus’ chief executive officer, said, “The addition of a dark fiber network brings a new product set to the company, allowing Vocus to provide bundled metro fiber services with existing data center and IP Transit products on a network entirely owned by Vocus. This is an important milestone for the company in our strategy to become the leading infrastructure provider to the telco, cloud computing and retail ISP markets.”

Vocus has additional plans to further invest in the fiber network to enhance its reach and sales, Spenceley added.

As recently reported by TMC (News - Alert), Vocus made its second major move into the data center market by acquiring Perth iX, a data center operator that offers Internet connectivity for managed networks, for approximately $7 million. The transaction will further strengthen Vocus' position as one of the leading independent wholesale telecommunications and data center operators in Australia and New Zealand.

The deal with Digital River Networks will bring a 536-square-meter facility into Vocus’ expanding portfolio, which began with its first acquisition of Sydney and Melbourne-based data centers from E3 Networks for $5.9 million in October 2010.

Jennifer Russell is a TMCnet Copy Editor. Previously she worked as an Editorial Production Assistant at the Taunton Press and as a Production Assistant at Hersam-Acorn Newspapers. To read more of her articles, please visit her columnist page.

Edited by Tammy Wolf

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