Telstra has announced it will buy Asian telecommunications group Pacnet, owner of the world’s largest private submarine cable network.

The $US697 million ($A754.12 million) acquisition is expected to be completed mid-2015, it said.

Singapore and Hong Kong-headquartered Pacnet also has interests in a Chinese joint venture, PBS, which operates a domestic Internet Protocol Virtual Private Network and data centre services in most major provinces in China.

The final cost of the deal could be higher with debt included. It is subject to completion adjustments, regulatory and Pacnet financier approvals.

Telstra chief executive David Thodey said the acquisition was aligned to Telstra’s growth strategy and was a significant step as it expanded the business beyond Australia.

“Asia is an important part of our growth strategy,” he said.

“We believe this acquisition will help us become a leading provider of enterprise services to multinational companies and carriers in the region.”

Telstra has signalled for some time its intention to make technology acquisitions in Asia and has previously formed partnerships, but this is its largest deal to date.

Pacnet is a provider of connectivity, managed services and data centre services to carriers, multinational corporations and governments in the Asia-Pacific region.

“For Australian businesses, businesses across Asia and importantly companies looking to expand and grow in Asia, the combined entity will provide powerful new options for networks and services,” Thodey said.

Pacnet’s revenues in 2013 were $US472 million, with earnings before interest, tax, depreciation and amortisation of $US111 million.