Vocus Acquires Data Centres in Sydney and Melbourne

Vocus acquires Data Centres in Sydney and Melbourne

25 October 2010: Vocus Communications Ltd. (ASX:VOC) announced today that it has entered into a binding agreement to acquire the Sydney and Melbourne data centre businesses from E3 Networks.

The transaction is for a total consideration of $5.9 million, to be paid as $4.9 million in cash and $1 million in Vocus shares.

The cash component will be funded from Vocus’ existing cash resources.

The transaction will add at least $1.5 million of underlying annualised profit before tax to Vocus’ bottom line.

Renowned for its ongoing focus on customer service and commitment to technical excellence, the acquisition further enhances the Vocus service offering for its 120 ISP and telecommunications industry customers.

The first acquisition by the recently listed Vocus will allow the Telco to provide its customer base with independent datacentre space in Sydney and Melbourne where space has becoming increasingly scarce.

In addition to acquiring the infrastructure and existing cashflows, the Sydney and Melbourne E3 teams will join Vocus with E3 Founder and CEO, Jon Eaves becoming the General Manager of the Vocus Data Centre Division. Mr Eaves will assume responsibility for the management and expansion of the data centre business unit.

James Spenceley, Vocus CEO, believes it will also provide Vocus with a platform to further expand into data centres.

“E3 and Jon Eaves have a great reputation for building and operating datacentres and the combination will attract new customers for both data centre space and our core wholesale telecommunications products,” he said.

Mr. Eaves agreed. “The merged organisation will consolidate Vocus’ position as a leading independent wholesale telco. We can build on the technical strengths of both Vocus and E3 to leverage increasing customer demand in both the Data Centre and telco markets,” he added.

The deal covers two existing datacentres, with an additional 400 square meters to come online in the next 45 days in Sydney. These modern facilities have been constructed in the last two years, with the Sydney data centre allowing some of the industry’s highest power density ratings of up to 30KW per rack.

About Vocus

Recently listed on the ASX (ASX:VOC) Vocus Communications is a leading telecommunications provider of wholesale Voice, Peering and International Internet connectivity to Telecommunications companies and ISPs across Australia, NZ and the US. The company provides high performance, high availability, and highly scalable communications solutions, which allow service provider to quickly and easily deploy new services for their own customer base.

About E3 Networks

E3 Networks is a large Australian based independent operator of state-of-the-art datacentres in Sydney, Melbourne and Brisbane. E3 provides datacentre suites, cabinets/racks to well known operators such as Pipe Networks (now TPG), Intervolve and Netregistry. High-density power requirements are met utilising state-of-the-art products like Hot Aisle Containment Systems with power densities of up to 30KW per rack.

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