Shares in Vocus Communications Limited (ASX: VOC) have soared 42c or 8.8% today after the network infrastructure provider announced the strategic acquisition of New Zealand's FX Networks for NZ$115.8 million ($107.7 million).
From the acquisition, Vocus will gain a New Zealand fibre optic cable network operator which is expected to deliver somewhere between NZ$13.5-14.5 million to Vocus' earnings before interest, depreciation and amortisation (EBITDA) in its first year following the acquisition. It is also expected to deliver double-digit earnings per share accretion by FY2016.
According to Vocus' CEO James Spenceley, the acquisition was made to "mirror" its Australian success in New Zealand as "the only integrated provider of fibre, internet and data centres". He added that: "The FX acquisition adds the missing fibre piece to our existing data centre and internet investment in New Zealand."
Thanks to today's jump, Vocus' shares have risen an incredible 146.7% in the last 12 months, smashing the S&P/ASX 200 Index's (Index: ^AXJO) (ASX: XJO) 15.4% gain, with shares now trading at $5.18. Although it might not seem like a cheap stock, given that it is trading on a projected P/E ratio of 33.9, Vocus still poses as an attractive buy given its enormous growth potential.
An even better ASX growth stock…
Although Vocus would make an excellent addition to any growth portfolio today, there is another company that I am even more bullish on. I already own the stock but given its excellent long-term growth potential and fantastic fully franked dividend yield, I can't help but think I should be buying more…
