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Tech & Science Tech: DXN signs $2.4m deal as part of $300m Pacific Ocean infrastructure project

03:50  06 november  2019
03:50  06 november  2019 Source:   stockhead.com.au

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Data technology company DXN Limited (ASX: DXN ) is setting up shop in the Pacific Ocean . It’s part of a $ 2 . 4 m deal the company — which designs and Once set up, the broader infrastructure project will allow Southern Cross customers to access increased functionality across key points of contact

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Tech: DXN signs $2.4m deal as part of $300m Pacific Ocean infrastructure project© Stockhead Australia Tech: DXN signs $2.4m deal as part of $300m Pacific Ocean infrastructure project

Data technology company DXN Limited (ASX:DXN) is setting up shop in the Pacific Ocean.

It’s part of a $2.4m deal the company — which designs and builds data centres — announced this morning with Telstra-backed Southern Cross Cable Ltd (SCCL).

As part of the agreement, DXN will supply key components for the construction of modular cable landing stations for three locations in the Pacific, in connection with a broader $300m communications network that SCCL is building in the Pacific region.

Shares in DXN climbed by more than 8 per cent in morning trade to 6.7c.

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Connecting up

The pre-fabricated landing stations will be deployed at three separate Pacific island nations — Fiji, Kiribati and Tokelau.

It forms part of SCCL’s bigger strategic objective — to create a hardware cable system providing increased connectivity between Sydney, Auckland and Los Angeles by early 2022.

The cable system will also provide increased connectivity for the three countries hosting the infrastructure.

DXN CEO Matthew Madden said he was confident the company would be able to provide a “robust and reliable solution to the people in the Pacific Islands for the 25-year plus life of the cable”.

Construction of the landing stations will start this month, and will be deployed on-site by next year.

DXN said they are built to withstand changing weather conditions, with backup power functions and the requisite security features.

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Once set up, the broader infrastructure project will allow Southern Cross customers to access increased functionality across key points of contact between Australia, the US and New Zealand.

DXN said the $2.4m contract was “subject to standard termination provisions for a contract of this nature”.

Stockhead has contacted the company for comment on details around what those provisions are.

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The post Tech: DXN signs $2.4m deal as part of $300m Pacific Ocean infrastructure project appeared first on Stockhead.

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