Vocus Group Explained

Vocus Group Limited
Type:Private
Industry:Diversified Telecommunication Services
Founder:James Spenceley
Hq Location City:North Sydney
Hq Location Country:Australia
Parent:Voyage Australia Pty Limited

Vocus Group Limited, formerly known as Vocus Communications, is an international telecommunications company headquartered in North Sydney, Australia. Founded by James Spenceley[1] as a wholesale, business, government and consumer telecommunications provider, Vocus owns and manages Australia's second largest intercapital fibre network. Vocus provides retail, wholesale and corporate telecommunications services across Australia and New Zealand.[2] Vocus offers data network services such as Internet, dark fibre, IP WAN, unified communications and telephony and cloud services[3] to mid, large and corporate businesses direct and also acts as a wholesaler.[4] The company owns and operates 18 data centres across Australia and New Zealand and has an onshore network operations centre run by the engineers who built the network.[5]

Vocus acquired Perth-based Amcom in 2015. Vocus merged with M2 Group on 22 February 2016 in a merger worth AU$3.75 billion,[6] before which it reported profits of AU$62.25M.[7] The merger made it Australia's fourth largest telecommunications company, with 471,000 subscribers.[8]

The company acquired Nextgen Networks for $861 million[9] in October 2016. This allows Vocus access to the National Broadband Network backhaul and infrastructure in Northern Australia serving the offshore gas projects.[9]

Vocus was acquired by Voyage Australia Pty Limited, a consortium of Macquarie Infrastructure and Real Assets (MIRA) and superannuation fund Aware Super, in 2021.

History

Vocus was founded by entrepreneur James Spenceley[10] in March 2008.[11] In 2013, Spenceley came in at No 81 on the BRW's Young Rich list after the business raised its annual revenue to $67 million.[12] Two years later, Spenceley became one of the youngest Australians in history to run a company worth more than $1 billion after Vocus merged with Perth-based Amcom.[13]

Amcom was founded in 1988[14] by Andrew Mclean to provide cabling services to CBD-based corporations and institutions in Perth. Amcom acquired a telecommunications carrier licence in 1998[15] and began building a fibre optic network. In 2009 Amcom won the Best Telecommunications Company of the Year 2009 - Australian Telecommunications Magazine.[16]

In December 2014, the board of Amcom approved the acquisition of the group by Vocus for AU$653 million.[17] In April 2015, rival TPG Telecom increased its shareholder stake in Amcom to 18.6 per cent in an attempt to block the merger.[18] TPG eventually built its stake to 19.9 per cent of Amcom.[19] In response, a campaign to persuade at least 75 per cent of shareholders to vote in favour of the merger was launched by both Amcom and Vocus. On 15 June 2015 the merger went ahead after 77 percent of Amcom shareholders voted in favour of the merger. In July 2015 the $1.2 billion merger between Amcom and Vocus was formally completed. On 29 June 2015 CEO Clive Stein resigned after a 16-year career with the company to make way for incoming Vocus CEO Spenceley to take over the combined group.[20]

Executive director and founder Spenceley and non-executive director Tony Grist left the board of Vocus in October 2016 after a failed leadership succession proposal.

In February 2018 CEO Geoff Horth left the company. In March 2018 M2 Group Founding MD and CEO Vaughan Bowen stepped away from the role of Non-Executive Chairman of the Vocus Board to increase Board independence, and former Telstra Chairman and founding CEO of Optus, Robert Mansfield AO was made chairman.[21] Michael Simmons became Interim CEO until the appointment of Kevin Russell on 28 May 2018.

In April 2018, Vocus announced it had decided not to sell off the NZ portion of the business as an acceptable offer had not been received.

Vocus acquisitions

Vocus has made several acquisitions to extend its product and service offering. In 2014, Vocus purchased a data centre from ASG Group for $11.7 million.[22] In 2014 it also acquired Bentley data centre in Perth from IT provider ASG for $11.7m.[23] The same year, it acquired FX Networks,[24] a New Zealand-based fibre provider which services many of New Zealand's major organisations including many government agencies, telco carriers, ISPs and enterprises.[25] In 2015, it acquired Enterprise Data Corporation, including two Sydney and Melbourne based data centres for $23.5 million.[26] [27] In 2015, Vocus acquired a 10% stake in the SEA-ME-WE 3 Cable from Telecom NZ,[28] increasing the company's investment in Western Australia.[29]

Amcom acquisitions

Amcom
Traded As: (until 9 July 2015)
Founded: in Perth
Parent:Vocus Communications

In September 2005, Amcom acquired the customers of Perth Internet service provider Arachnet for A$1.6 million, adding 5,200 broadband and 2,100 dial-up customers to their user base, increasing Amcom's total broadband numbers to 7,500.[36] In April 2007 Amcom Telecommunications completed the A$6.25 million acquisition of People Telecom's Perth-based corporate services business.[37] The acquired assets include a client base using fibre and DSL-based broadband services and a large data centre facility with some 600 square metres of space.[38] In February 2010, Amcom announced that it intended to acquire 100% of the issued share capital of IP Systems Pty Ltd, an IP communications company delivering voice, video and data solutions to Australia and New Zealand.[39] The $5.3 million acquisition was completed in May 2010.[40] Amcom bought out L7 Solutions Pty Ltd in 2012 for A$15 million.[41] This allowed Amcom to expand its footprint in IT integration, managed services and consulting and additional of about 200 clients. Amcom acquired aCure Technology on 22 August 2013 for $14.3 million[42]

Brands

Wholesale and international

Business, enterprise and government - Australia

Consumer - Australia

Consumer - New Zealand

Enterprise and wholesale - New Zealand

Notes and References

  1. Web site: VOC.AU Company Profile & Executives - Vocus Group Ltd. - Wall Street Journal. quotes.wsj.com. 2017-11-09. 9 November 2017. https://web.archive.org/web/20171109081347/http://quotes.wsj.com/AU/XASX/VOC/company-people. live.
  2. Web site: Vocus and Amcom create largest trans-Tasman network infrastructure provider. ARN. 2016-04-20. 1 August 2015. https://web.archive.org/web/20150801063025/http://www.arnnet.com.au/article/580350/vocus-amcom-create-largest-trans-tasman-network-infrastructure-provider/. live.
  3. Web site: Vocus-Amcom deal bears fruit . 20 April 2016 . 19 February 2016 . https://web.archive.org/web/20160219155904/http://www.itwire.com/it-industry-news/telecoms-and-nbn/68914-vocus-amcom-deal-bears-fruit . live .
  4. Web site: Vocus launches NBN Connect for partners . Dinham . Peter . 5 April 2016 . iTWire . 10 June 2020 . 26 June 2018 . https://web.archive.org/web/20180626073948/https://www.itwire.com/it-industry-news/telecoms-and-nbn/72193-vocus-launches-nbn-connect-for-partners.html . live .
  5. Web site: Vocus expands Auckland data centre operation. iTnews. 2016-04-20. 8 May 2016. https://web.archive.org/web/20160508225950/http://www.itnews.com.au/news/vocus-expands-auckland-data-centre-operation-361014. live.
  6. Stewart, Robb M. "Vocus, M2 Group Plan Merger", Wall Street Journal, 27 September 2015. Accessed 3 February 2016.
  7. Web site: Vocus delivers hefty dividends. News. 2016-04-20. 26 February 2016. https://web.archive.org/web/20160226094138/http://www.sbs.com.au/news/article/2016/02/26/vocus-delivers-hefty-dividends. live.
  8. Web site: Vocus, M2 profits rise in final months before merger. The Sydney Morning Herald. 2016-04-20. 26 February 2016. https://web.archive.org/web/20160226124454/http://www.smh.com.au/business/vocus-m2-profits-rise-in-final-months-before-merger-20160225-gn42tz.html. live.
  9. Web site: Ry . Crozier . The juiciest opportunities from Vocus' $861m Nextgen buy . 4 July 2016 . iTnews . 2016-10-12 . 12 October 2016 . https://web.archive.org/web/20161012152120/http://www.itnews.com.au/news/the-juiciest-opportunities-from-vocus-861m-nextgen-buy-430058 . live .
  10. News: Vocus, M2 profits rise in final months before merger. 26 February 2016. Sydney Morning Herald. 26 February 2016. 26 February 2016. https://web.archive.org/web/20160226124454/http://www.smh.com.au/business/vocus-m2-profits-rise-in-final-months-before-merger-20160225-gn42tz.html. live.
  11. Web site: About Vocus. 26 February 2016. 25 February 2016. https://web.archive.org/web/20160225202314/http://www.vocus.com.au/our-story?. live.
  12. Web site: Hawks mean business: new owner James Spenceley. KEEBLE. TIM. Illawarra Mercury. 20 June 2014. 2016-04-18. 25 April 2016. https://web.archive.org/web/20160425121256/http://www.illawarramercury.com.au/story/2366186/hawks-mean-business-new-owner-james-spenceley/. live.
  13. Web site: James Spenceley's next big challenge. The Sydney Morning Herald. 11 January 2015. 2016-04-18. 6 August 2016. https://web.archive.org/web/20160806070237/http://www.smh.com.au/business/james-spenceleys-next-big-challenge-20150111-12m105.html. live.
  14. Web site: amcom- ABOUT - Investors - Board of Directors. 2007-09-13. 30 August 2007. https://archive.today/20070830054224/http://www.amcom.com.au/default.aspx?MenuID=36. live.
  15. Web site: WA Industrial Review - March 2007. 2007-09-14 . https://web.archive.org/web/20070830062357/http://www.amcom.com.au/getfile.aspx?Type=document&ID=637&ObjectType=3&ObjectID=1193 . 2007-08-30.
  16. Web site: Australian Telecom Awards 2009. 2010-05-17. 23 August 2010. https://web.archive.org/web/20100823025355/http://www.charlton.com.au/events/telecom/index.asp. live.
  17. Web site: Vocus-Amcom deal seen as positive. 21 December 2014. 2015-05-04. 24 January 2015. https://web.archive.org/web/20150124230013/http://www.smh.com.au/business/vocusamcom-deal-seen-as-positive-20141221-12ae7r.html. live.
  18. Web site: TPG confirms Amcom blocking stake. 2015-07-26.
  19. Web site: Amcom shareholders rise up to beat David Teoh's TPG . 15 June 2015 . 2015-07-26 . 19 August 2015 . https://web.archive.org/web/20150819195423/http://www.afr.com/business/telecommunications/amcom-shareholders-rise-up-to-beat-david-teohs-tpg-20150615-ghof63 . live .
  20. Web site: Amcom CEO resigns. 2015-07-26. 1 August 2015. https://web.archive.org/web/20150801203212/http://www.itnews.com.au/News/405872,amcom-ceo-resigns.aspx. live.
  21. Web site: Vocus Board changes – Appointment of Independent, Non-Executive Chairman . asx.com.au . 4 April 2023 . en . PDF . 5 March 2018 . 4 April 2023 . https://web.archive.org/web/20230404061907/https://www.asx.com.au/asxpdf/20180306/pdf/43s65gjxmrw9fp.pdf . live .
  22. Web site: ASG Group to sell data centre for $11.7m. Computerworld. 2016-04-18. 14 October 2015. https://web.archive.org/web/20151014233027/http://www.computerworld.com.au/article/552275/asg_group_sell_data_centre_11_7m/. live.
  23. Web site: Vocus spends $11.7m to buy ASG's Perth data centre. iTnews. 2016-04-18. 8 May 2016. https://web.archive.org/web/20160508202336/http://www.itnews.com.au/news/vocus-spends-117m-to-buy-asgs-perth-data-centre-391006. live.
  24. Web site: Telecoms provider Vocus buys NZ fibre optic networks company FX Networks. The Sydney Morning Herald. 2 July 2014. 2016-04-18. 16 August 2016. https://web.archive.org/web/20160816125704/http://www.smh.com.au/business/telecoms-provider-vocus-buys-nz-fibre-optic-networks-company-fx-networks-20140702-zstbk.html. live.
  25. Web site: Vocus / FX: What you need to know.... New Zealand Reseller News. 2016-04-18. 2 April 2016. https://web.archive.org/web/20160402070832/http://www.reseller.co.nz/article/565489/vocus-fx-what-need-know/. live.
  26. Web site: Vocus Communications to buy EDC data centres for $23.5 million. Computerworld. 2016-04-18. 30 April 2016. https://web.archive.org/web/20160430093537/http://www.computerworld.com.au/article/566281/vocus-communications-buy-edc-data-centres-23-5-million/. live.
  27. Web site: Vocus splashes $23.5m on two data centres. iTnews. 2016-04-18. 7 May 2016. https://web.archive.org/web/20160507200903/http://www.itnews.com.au/news/vocus-splashes-235m-on-two-data-centres-400477. live.
  28. Web site: Vocus buys submarine cable capacity from Telecom NZ. Computerworld. 2016-04-18. 10 March 2016. https://web.archive.org/web/20160310131507/http://www.computerworld.com.au/article/547855/vocus_buys_submarine_cable_capacity_from_telecom_nz/. live.
  29. Web site: Vocus buys Sea-Me-We 3 undersea cable between Perth and Singapore. ARN. 2016-04-18. 7 May 2016. https://web.archive.org/web/20160507000855/http://www.arnnet.com.au/article/547993/vocus_buys_sea-me-we_3_undersea_cable_between_perth_singapore/. live.
  30. Web site: Vocus Group. Half Year FY17, Note 22. Business combinations. 32. PDF. 4 August 2017. 5 August 2017. https://web.archive.org/web/20170805055653/http://www.asx.com.au/asxpdf/20170222/pdf/43g5xyppgg4mtf.pdf#page=31. live.
  31. Web site: Vocus Group. FY16 Results Statutory Accounts, Note 40. Business combinations. 90. PDF. 4 August 2017. 5 August 2017. https://web.archive.org/web/20170805100708/http://www.asx.com.au/asxpdf/20160823/pdf/439jcwkytvjh4d.pdf#page=90. live.
  32. Web site: Vocus Group. FY15 Statutory Accounts, Note 35. Business combinations. 64. PDF. 4 August 2017. 7 February 2016. https://web.archive.org/web/20160207180553/http://www.asx.com.au/asxpdf/20150827/pdf/430vmsb38111wd.pdf#page64. live.
  33. Web site: Vocus Group. FY14 Annual Report, Note 39. Business combinations. 62. PDF. 4 August 2017. 5 August 2017. https://web.archive.org/web/20170805060525/http://www.asx.com.au/asxpdf/20141028/pdf/42t81wzxmwflws.pdf#page62. live.
  34. Web site: Vocus Group. FY13 Annual Report, Note 38. Business combinations. 78. PDF. 4 August 2017. 5 August 2017. https://web.archive.org/web/20170805060533/http://www.asx.com.au/asxpdf/20131024/pdf/42k8ggr0hqk011.pdf#page=78. live.
  35. Web site: Vocus Group. FY12 Annual Report, Note 40. Business combinations. 37. PDF. 4 August 2017. 5 August 2017. https://web.archive.org/web/20170805060419/http://www.asx.com.au/asxpdf/20121003/pdf/4294dwkmfc92hh.pdf#page=37. live.
  36. Web site: Amcom snaps up Arachnet for $1.6m . 2007-09-14 . 28 May 2024 . https://web.archive.org/web/20240528113036/https://whirlpool.net.au/news/?id=1537 . live .
  37. Web site: People Telecom Ltd - BuddeComm. 2007-09-14. https://web.archive.org/web/20070922001511/http://www.budde.com.au/Reports/Contents/People-Telecom-Ltd-2268.HTML. 22 September 2007 . live.
  38. Web site: Amcom nabs People Telecom's Perth fibre. 2007-09-14. 16 January 2008. https://web.archive.org/web/20080116061140/http://www.zdnet.com.au/news/communications/soa/Amcom-nabs-People-Telecom-s-Perth-fibre/0,130061791,339274059,00.htm. live.
  39. Web site: iTWire - Amcom moves into enterprise telephony, buys IP Systems. 2010-05-17. 25 February 2010. https://web.archive.org/web/20100225102733/http://www.itwire.com/it-industry-news/deals/37070-amcom-moves-into-enterprise-telephony-buys-ip-systems. live.
  40. Web site: Amcom closes $5.3m IP Systems buy. 2015-07-26. 5 September 2017. https://web.archive.org/web/20170905000641/https://www.cio.com.au/article/447237/amcom_closes_5_3m_ip_systems_buy. live.
  41. Web site: L7 Solutions now Amcom. www.amcom.com.au. 2015-05-04. 4 March 2016. https://web.archive.org/web/20160304072141/http://www.amcom.com.au/news-media/article/l7-solutions-now-amcom. live.
  42. Web site: Amcom acquires Perth Data Centres. 20 July 2017. 4 September 2017. https://web.archive.org/web/20170904152124/http://www.asx.com.au/asxpdf/20130822/pdf/42hvc9hbcfmx4q.pdf. live.
  43. Web site: Amcom. Half Year Results FY15, 7.Acquisition of Controlled Entity. 21. PDF. 5 August 2017. 5 August 2017. https://web.archive.org/web/20170805060321/http://www.asx.com.au/asxpdf/20150220/pdf/42wr0ktjc3xf0h.pdf#page=21. live.
  44. Web site: Amcom. FY14 Results, 25.Acquisition of Controlled Entity. 53. PDF. 5 August 2017. 5 August 2017. https://web.archive.org/web/20170805060444/http://www.asx.com.au/asxpdf/20140905/pdf/42s1jg7mcmpmhx.pdf#page=53. live.
  45. Web site: Amcom. FY12 Results, 8.Acquisition of Controlled Entity. 15. PDF. 5 August 2017. 5 August 2017. https://web.archive.org/web/20170805100804/http://www.asx.com.au/asxpdf/20120821/pdf/4284m720ymksxp.pdf#page=15. live.
  46. Web site: Amcom. FY10 Annual Report, 29.Business Combinations. 86. PDF. 5 August 2017. 5 August 2017. https://web.archive.org/web/20170805060619/http://www.asx.com.au/asxpdf/20100929/pdf/31st64y62tz2p0.pdf#page=86. live.
  47. Web site: Amcom. FY10 Annual Report, 31.Acquisition of Businesses. 71. PDF. 5 August 2017. 5 August 2017. https://web.archive.org/web/20170805100807/http://www.asx.com.au/asxpdf/20071001/pdf/314vw57zvfthxw.pdf#page=71. live.
  48. Web site: Amcom. FY03 Annual Report, 30.Acquisition of Businesses. 53. PDF. 5 August 2017. 5 August 2017. https://web.archive.org/web/20170805100438/http://www.asx.com.au/asxpdf/20040928/pdf/3n03jcw01x5cz.pdf#page=53. live.
  49. Web site: Commission grants clearance for Vocus/2degrees merger. Commerce Commission. 1 June 2022. 16 March 2022. https://web.archive.org/web/20220316074919/https://comcom.govt.nz/news-and-media/media-releases/2022/commission-grants-clearance-for-vocus2degrees-merger. live.
  50. Web site: Vocus buys Stuff Fibre . Vocus . 20 August 2020 . 4 August 2020 . https://web.archive.org/web/20200804145900/https://www.vocus.co.nz/vocusbuysstufffibre . live .

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