Vocus Communications has snapped up E3 Networks' Sydney and Melbourne data centres for $5.9 million.
The deal covers two existing data centres and another 400 square meters of space due to come online in Sydney "in the next 45 days", the company said in a statement.
E3's five staff - including founder and chief Jon Eaves - will be integrated into Vocus as its data centre division.
Vocus chief James Spenceley [pictured] said the integration of the businesses would likely be completed in the next "30 to 45 days".
Spenceley said that the acquisition had been on the cards since at least July.
Vocus - whose core business is providing wholesale IP transit services - said today it would buy the data centre businesses for $4.9 million in cash and $1 million in Vocus shares.
It was the company's first acquisition since listing on the Australian Stock Exchange.
It would give Vocus access to "independent data centre space in Sydney and Melbourne where space has becoming increasingly scarce", the company said in a statement.
Eaves would "assume responsibility for the management and expansion of the data centre business unit", according to Vocus.
The acquisition did not include a web hosting business also owned by E3 called Dedicated Servers, which would remain a separate entity.
Copyright © iTnews.com.au . All rights reserved.
Issue: 325 | March 2014
Access CRN's extensive online resources including; email bulletins, community discussions and unique online news.
Processing registration... Please wait.
This process can take up to a minute to complete.
A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can log on to the CRN website or start posting comments on articles.
If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain '@crn.com.au' to your white-listed senders.