PriceSensitive

Superloop (ASX:SLC) to acquire VostroNet for $35m

ASX News, Telecommunication
ASX:SLC      MCAP $1.019B
26 September 2022 12:59 (AEDT)

This browser does not support the video element.

Network provider Superloop (SLC) has entered a sale and purchase agreement to acquire VostroNet for $35 million.

VostroNet is an end-to-end internet infrastructure and software provider for multi-dwelling and broadcare developments.

Its customers include the Queensland University of Technology, Sunshine Coast Council, UniLodge, CBUS, Iglu Student Accommodation and Consolidated Properties.

This acquisition aligns with Superloop’s strategy to develop its On-Net Smart Communities division by including fibre-to-the-premises capabilities, build to rent, broadcare and multi-dwelling (MDU) markets.

The $35 million acquisition price consists of $24.5 million in cash and $10.5 million in Superloop shares.

The cash portion will be funded by SLC’s cash reserves and subject to conditions being met, the acquisition is expected to be completed towards the end of the year.

Subject to meeting certain take-up targets, the vendors may also receive earn-out payments of up to $15 million in cash.

“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,” CEO and Managing Director Paul Tyler commented.

Superloop was up 6.47 per cent on the market with shares trading at 61.8 cents at 12:59 pm AEST.

Related News