Australian telecoms and media giant Telstra has agreed to buy Pacnet Ltd., an internet services firm based in Singapore and Hong Kong, for US$697 million in its push to expand in Asia.
Telstra will now be able to provide virtual private network services in China and will own 46,000 kilometers of undersea fiber networks and data centers across the region, the Financial Times reported.
Pacnet owns Asia’s largest submarine cable network and the Trans-Pacific cable system linking Japan and California.
“Asia is an important part of our growth strategy,” Telstra chief executive David Thodey said Tuesday.
“We believe this acquisition will help us become a leading provider of enterprise services to multinational companies and carriers in the region.”
Telstra has set aside a A$5 billion (US$4 billion) war chest for expansion in Asia, the report said.
The firm, which has been doing business in Asia for more than 70 years, generated less than 10 per cent of its revenues this year in Asia.
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