Telstra to acquire Digicel for US$1.6bn.

Telstra (ASX:TLS) has announced it has partnered with the Australian Government to acquire South Pacific telco Digicel for US$1.6bn, plus up to an additional US$250m subject to business performance over the next three years.

The Australian Government, through Export Finance Australia, is contributing US$1.33bn to the deal while Telstra is contributing US$270m. Telstra will own 100% of the ordinary equity.

Telstra shares rose 2.82% following the announcement.