Converge Snaps Up 2 Companies to Expand Capabilities
Converge ICT Solutions is doubling down on its efforts to “expand its capabilities in telecommunications” by acquiring shares in two companies worth a total of $7.5 million (P358.47 million).
The listed broadband internet provider announced via two separate disclosures in the Philippine Stock Exchange that it bought 10 million common shares in Digital Telecommunications Phils. Inc. (DTPI) in Digitel Crossing Inc. (DCI) for $4.84 million, as well as 300,000 common shares in Asia Netcom Philippines Corp. (ANPC) for $2.66 million.
DCI maintains and operates the cable landing stations in the Philippines for the East Asia Crossing (EAC) and City-to-City (C2C) cable systems. ANPC, on the other hand, holds and owns the land assets where the EAC cable landing station is located.
According to Converge, the acquisitions “will promote the strategic imperative of Converge to expand its capabilities in telecommunications since it acquires interest in entities involve in providing, operating and maintaining the cable landing stations of EAC and C2C international cables.”
The two cable systems, which interconnect several countries in Asia and the Pacific and the U.S., were merged through the acquisition of global telecom services provider Pacnet, a company owned by Telstra. Together the two submarine cable systems have eight landing points in Singapore, Hong Kong, China, Taiwan, South Korea, Japan, and the Philippines, spanning 19,800 kilometers with a design capacity of 2.56Tbps.
The acquisitions will also “promote synergies in the telecommunications business of Converge and is meant to implement the joint venture between Converge, Pacnet Network Philippines Inc.” as well as DCI and ANPC.
Converge reported revenues of 5.55 billion in the first quarter of 2021, an 83.6 percent increase from P3.02 in the same period last year. Profs, meanwhile, tripled to P1.55 billion from P574 million as demand for internet connectivity rose sharply during the pandemic.
The company said it expects to have around 1.6 million to 1.7 million subscribers by the end of the year.
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