- Network services provider Swoop (SWP) enters an agreement to acquire 100 per cent of connectivity provider Countrytell Holdings
- Based in Newcastle, Countrytell delivers high-speed internet through a mix of technologies which includes fibre and fixed wireless
- The total purchase price is $4.2 million and consists of $2.1 million in cash and $2.1 million worth of Swoop shares
- This acquisition allows Swoop to further expand its coverage
- Swoop ends the day 10.2 per cent in the green with shares trading at $2.16
Network services provider Swoop (SWP) has entered an agreement to acquire 100 per cent of connectivity provider Countrytell Holdings.
Based in Newcastle, Countrytell operates a fixed wireless network consisting of over 30 towers, one of Newcastle’s largest data centres and a recently completed CBD dark fibre network.
It delivers high-speed internet through a mix of technologies which includes fibre and fixed wireless.
Its network spans across the Newcastle, Hunter, Mid-Coast and Snowy Monaro regions in New South Wales.
The total purchase price is $4.2 million and consists of $2.1 million in cash with $630,000 to be held back for 12 months for any potential claims and adjustments.
The remaining $2.1 million will consist of Swoop shares issued at the 30-day volume-weighted average price prior to completion.
The acquisition is subject to customary conditions including obtaining consent to change control and Countrytell employees entering into new employment agreements.
CEO Alex West is excited by the acquisition as it allows Swoop to further expand its coverage.
“Acquiring Countrytell’s network provides another opportunity for Swoop to further expand the coverage of our infrastructure footprint in regional Australia, as well as providing additional services via its data centre operations,” Mr West said.
“The company has invested significantly in upgrading its wireless, network infrastructure and transmission company; and gives us a strong springboard for continued growth in this market.”
Swoop has ended the day 10.2 per cent in the green with shares trading at $2.16 in a $335.5 million market cap.