TPG Telecom to acquire AAPT for $450m

ISP TPG Telecom has arranged to buy the remaining parts of AAPT from parent Telecom New Zealand for $450 million.

The companies expect to complete the transaction at the end of February next year. The purchase price represents a multiple of around 6.4x AAPT’s annualised EBITDA run rate.

AAPT has been concentrating on the business and wholesale market since Telecom NZ sold the unit’s consumer division to iiNet in 2010. Telecom NZ is now selling the remainder of the business.

In a statement, Telecom NZ CEO Simon Moutter said the AAPT sale “is consistent ... with our desire to focus principally on our New Zealand operations and on the needs of New Zealand customers”.

TPG Executive Chairman David Teoh said the acquisition will provide the company with more than just AAPT’s corporate and wholesale business - AAPT owns 11,000 km of fibre across six states and territories, including between the large capital cities.

“The incorporation of AAPT’s inter-capital fibre into TPG’s extensive CBD, metropolitan and international network assets will further enhance TPG’s position as an increasingly major force in the telecommunications market,” he said.

Image courtesy of Neerav Bhatt under CC.