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- Superloop (SLC) completes the acquisition of VostroNet for $35 million
- The consideration includes a $24.5 million cash payment and $10.5 million in Superloop shares, funded from the company’s existing cash reserves
- Subject to meeting certain take-up targets, the vendors may also receive earn-out payments of up to $15 million in cash
- SLC MD and CEO, Paul Tyler says he’s looking forward to “strengthening our position” in providing net broadband services to the student accommodation, multi dwelling units and FTTP markets
- Shares in Superloop are up 4 per cent, trading at 78 cents as of 2:40 pm AEDT
Superloop (SLC) has completed its 100 per cent acquisition of VostroNet for $35 million.
VostroNet is an end-to-end internet infrastructure and software provider who delivers high speed fibe to the premises (FTTP) and WiFi for multi-dwelling units and broadacre developments.
Its customers include the Queensland University of Technology, Sunshine Coast Council, UniLodge, CBUS, Iglu Student Accommodation and Consolidated Properties.
The consideration consists of $24.5 million in cash and $10.5 million in Superloop shares, funded from the company’s existing cash reserves.
Subject to meeting certain take-up targets, the vendors may also receive earn-out payments of up to $15 million in cash.
“I look forward to working collectively to further strengthen our position in the provision of on net broadband services to the student accommodation, multi dwelling units and FTTP markets,” SLC Managing Director and CEO Paul Tyler said.
“As a challenger in the industry, Superloop is committed to doing more to improve the overall customer experience.
“We know the value and importance of connectivity and we see a real opportunity to support those in multi-dwelling communities.”
On a FY23 full-year pro forma basis, the acquisition will reportedly contribute roughly $4.6 million in earnings before interests, taxes, depreciation and amortisation (EBITDA), before synergies.
Where the earnout is fully achieved, the resulting EBITDA multiple is expected to be around 7.5 times.
Shares in Superloop were up 4 per cent, trading at 78 cents as of 2:40 pm AEDT.
