|Transaction||Vocus Communications acquires FirstPath|
|Counterparty||FirstPath Pty Ltd|
Bonitz Advisory is proud to have been the lead buy-side adviser to Vocus Communications Limited (Vocus) on its acquisition of FirstPath Pty Ltd (FirstPath).
FirstPath’s significant fibre optic network in the greater Sydney CBD area and its complementary building connections made FirstPath an attractive target to Vocus. Increased capacity, operational synergies and fibre deployment cost savings were amongst the key value drivers of the transaction.
As a relatively new, fast-growing, infrastructure heavy business, a key challenge of the deal was determining an appropriate valuation for the business. Our team employed a combination of valuations techniques including replacement value, market comparables and cash flow analysis to triangulate a value that considered not only real assets and financial performance but also the business’s early-stage nature as well to ensure that a fair price was recognised for each party.
Vocus Communications Limited (Vocus) – Vocus is an ASX listed leading telecommunications provider of data centre, wholesale voice, peering and international Internet connectivity to telecommunications companies and ISPs across Australia, NZ and the US.
FirstPath Pty Ltd (FirstPath) – FirstPath is a tier-1 Telco which builds and operates its own wholesale-only last-mile fibre optic network in Sydney’s CBD and Metro areas. The services provided includes Retail Service Providers Dark Fibre, Fibre Layer 2, and VDSL Layer 2 access to customers.