TORONTO – Ontario Teachers’ Pension Plan has announced an agreement to acquire 70% of three Australian telecommunications companies from Leighton Holdings Limited.
The acquisition of Nextgen Networks, Metronode and Infoplex values 100% of these businesses at A$885 million, subject to certain adjustments. Leighton, based in Sydney, will retain a 30% interest in the companies. The transaction is subject to various approvals, including the Australian Foreign Investment Review Board, and is expected to close in mid-2013.
Nextgen manages high-speed, carrier-grade fibre network services; Metronode provides data centre and related value-added services; and Infoplex provides cloud and ICT services. These businesses will be brought together under a new ownership structure following deal completion, and will remain headquartered in Australia with existing management remaining largely in place.
This transaction is led by Teachers’ Long-Term Equities group, which focuses on direct investments with steady cash flow, growth potential over a long-term horizon and a low to moderate level of risk. “We are excited about moving ahead with Leighton. The businesses are a good fit with our portfolio and investment mandate,” said Lee Sienna, vice-president, long-term equities, in a release. “Together they provide solid revenue streams and growth upside. We look forward to working with the existing management team to build on its strong track record.”
