AustralianSuper and Singtel owned Australia Tower Network (ATN) have announced the group will acquire Axicom, one of Australia’s leading providers of telecommunications tower infrastructure, for $3.58 billion.
AustralianSuper said it would continue to seek further opportunities in this sector both domestically and globally as it looks to double its infrastructure portfolio over the next five years from its current $31 billion.
AustralianSuper head of infrastructure, Nik Kemp, said: “We believe that there will be significant growth in demand for digital infrastructure and will actively consider future opportunities in this space.”
Axicom currently owned and operated approximately 2,000 telecommunication sites located in metro and outer-metro locations across the country.
As ATN’s shareholders, AustralianSuper and Singtel said the strong synergies between Axicom and ATN would provide exceptional growth opportunities which would benefit customers, employees, and the community in the long term.
Hemp said Axicom was a high-quality asset that would deliver long-term value to AustralianSuper members.
“Axicom is complementary to our existing digital infrastructure portfolio and this acquisition will result in the creation of a provider with a truly national footprint that will connect the vast majority of Australian families and businesses,” Kemp said.
“Axicom has all of the characteristics we are looking for in an infrastructure asset and there are strong synergies between the two organisations. We look forward to working with the great teams of both ATN and Axicom to bring these two strong businesses together and leverage the great opportunity we have to continue to deliver for customers and AustralianSuper members.”
Singtel group chief corporate officer, Lim Cheng Cheng said: “This acquisition is a unique opportunity to scale up ATN’s operations and expand its customer base. It also reinforces Singtel’s commitment as a long-term investor in the Australian telecoms space where our goal has always been to provide more options and build better communications for Australian consumers and businesses. In combining ATN and Axicom, AustralianSuper and Singtel will be working closely to realise the significant operational synergies created”.
AustralianSuper acquired a 70% stake in ATN from Singtel in November last year. Following the Axicom acquisition, Singtel’s shareholding in the combined ATN/Axicom business would be 18%, with AustralianSuper at 82%.