Want a data centre? $11.7m will get you one

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Want a data centre? $11.7m will get you one
Vocus' James Spenceley

Solutions provider ASG has sold its Perth data centre to Vocus Communication for  $11.7 million to help pay down its debt and focus on core business.

Vocus will become ASG's preferred telecommunications supplier.

In a statement to the sharemarket, ASG said the board considered the data centre as a non-core asset.

"While important to the workings of the group, it was recognised that the data centre would be better in the hands of a partner for whom data centres were core to their business," read the statement.

"ASG will remain a tenant, thereby providing ongoing hosting services to all their managed services clients."

ASG chief executive Geoff Lewis said that the sale 'substantially accelerates' the firm's debt reduction plan. ASG is now forecasting a net debt of "less than $10 million" for the 2015 financial year.

The facility is located in the suburb of Bentley, about 4km from Vocus' current data centre.

"We are delighted to acquire the high-quality Bentley Data Centre and secure the preferred supplier relationship with ASG, one of the largest IT solutions providers in Australia," said Vocus chief James Spenceley.

"The acquisition continues our investment in Perth and provides Vocus with additional resources to serve the fast-growing Western Australia market."

Perth-headquartered ASG has been on a road to recovery in recent times after suffering a loss in the first half of 2013. CRN has reported on several large contracts in recent months, including $21 million worth of work in May and 1,500-user contract in July.

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