Superloop will acquire Brisbane-based telco and network infrastructure provider VostroNet for $35 million to expand its services offerings into providing for multi-dwelling unit, broadacre and build-to-rent markets.
VostroNet provides wholesale Fibre-to-the-Premises (FTTP) access networks, wi-fi solutions and purpose-built student accommodation broadband.
Its customers include UniLodge, Iglu Student Accommodation, Queensland University of Technology and Sunshine Coast Council.
In an ASX announcement, Superloop said the acquisition would significantly bolster its FTTP capabilities.
"The combination of assets will deliver a market-leading position in the supply of broadband in the tertiary student accommodation sector, delivering national coverage to approximately 40,000 student beds.”
“As discussed in Superloop’s recent earnings call, it is encouraging to note this market segment has now recovered to its pre-COVID levels.”
Commenting on the acquisition, Superloop managing director and chief executive Paul Tyler said, "We are extremely pleased with this transaction as in addition to strengthening our position in the provision of on-net broadband services to the student accommodation market, it also adds capability in the growing build to rent and multi-dwelling unit markets.”
“We welcome the employees from VostroNet to Superloop and look forward to deepening the relationship.”
Superloop said that the purchase would be completed by the end of the year and funded from existing cash reserves.
The $35 million comes before customary completion adjustments and is comprised of $24.5 million in cash and $10.5 million in Superloop shares, the telco specified.
“The vendors may also be entitled to 'earn out' payments (capped at $15 million in cash), subject to meeting certain take-up targets related to contracted sites and obtaining $2.1 million of run-rate synergies (assumed to be realised within 24 months of completion),” Superloop said.
In May this year, Superloop also agreed to acquire Melbourne-based white-label broadband and managed services provider Acurus for $15 million.
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