Aussie Broadband has leapfrogged rival Superloop in market value after securing a major deal to acquire AGL’s telecommunications business.

Shares in Aussie Broadband surged 14% on Wednesday, lifting its market capitalisation to $1.3 billion.

In contrast, Superloop shares fell 3.66%, leaving it with a market value of $1.27 billion.

The shift comes just six months after industry observers speculated that Aussie Broadband could become a takeover target for the then higher-flying Superloop.

Under the agreement, Aussie Broadband will acquire AGL’s telco business through the issuance of $115 million in new shares, adding approximately 218,000 NBN, mobile and voice services to its customer base.

The deal includes customers from both AGL and its subsidiary Southern Phone.

AGL customers will migrate from Superloop’s network to Aussie Broadband in the first half of FY27.

Superloop, which provides wholesale network and backhaul services, has warned the transition could result in an annualised gross margin hit of up to $4 million if AGL fully reduces its usage under their existing agreement, which runs until June 2029.

The agreement will see AGL continue to market telco services under its own brand, bundling connectivity with energy products, while Aussie Broadband delivers the underlying network and customer experience.

The deal marks a notable reversal in fortunes between the two telcos. In 2025, Aussie Broadband made a $466 million bid for Superloop, which was rejected.

At the time, Superloop secured support from Origin Energy, which took a 14% stake and signed a six-year wholesale contract.

With the AGL acquisition and earlier deals involving Tangerine and More, CEO Brian Maher says Aussie Broadband is on track to become Australia’s third-largest NBN provider.