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Highlights:
- Superloop has entered into an agreement to acquire VostroNet for AU$35 million.
- VostroNet is a wholesale business of Fibre-to-the-Premises access and purpose-built student accommodation broadband services.
- The acquisition will cost AU$35 million to Superloop and is expected to get completed by the end of calendar year 2022, upon satisfying all the conditions involved with the acquisition.
Australian telecommunication service provider Superloop Limited (ASX:SLC) announced today that the company has signed a sale and purchase agreement which allows it to acquire VostroNet Holdings Pty Ltd. VostroNet operates a wholesale business of Fibre-to-the-Premises access and purpose-built student accommodation broadband services.
Followed by the release of this update, Superloop’s shares opened trading 1.724% stronger on ASX at AU$0.590 per share as of 10:21 AM AEST on Monday (26 September 2022).
Details of Superloop’s acquisition of VostroNet:
According to the update shared by Superloop, this acquisition is a representation of the company’s strategy to develop its On-Net Smart Communities division through the incorporation of Fibre-to-the-Premises features, installed base and pipelines to serve adjacent markets, including New Developments, Build to Rent, broadacre and MDU markets, and other relevant ones.
Paul Tyler, Managing Director, and Chief Executive Officer, Superloop Limited, said:
The total consideration of this acquisition is AU$35 million, which includes AU$24.5 million in cash and AU$10.5 million in shares of Superloop. Superloop is supposed to fund this acquisition with the help of its existing cash reserves.
The acquisition is expected to get completed by the end of the calendar year 2022. However, it is subjected to the satisfaction of the conditions precedent to sale.
Superloop’s update also revealed that the majority of VostroNet’s revenue is recurring in nature with on-net economics. As a result, the company expects this acquisition to contribute around AU$4.6 million of EBITDA in FY23.
About VostroNet:
