Superloop Snaps Up Exetel For $110 Million
Superloop is forking out $110 million to buy Exetel, the largest independent internet service provider in Australia.
The deal, which includes $100 million cash and $10 million in Superloop shares, has been financed by Superloop’s banks and a round of capital raising. It will bring all of Exetel’s approximately 290 employees under Superloop’s employment, with the Exetel and Superloop brands both remaining.
According to Superloop, the buyout will raise its revenue to a pro forma figure of $261 million, and see a pro forma uplift in EBITDA of 89 per cent to approximately $34 million.
Paul Tyler, CEO of Superloop, says the acquisition is a big step in the telco’s strategy to expand its APAC network in Australia, Singapore, and Hong Kong.
“This brings together the high capacity infrastructure that Superloop has built over the past six years, to meet continuing and growing demand for fast, reliable Internet services that are easy and quick to access.
“Exetel’s 110,000+ business and consumer end-users will be able to take advantage of that infrastructure,” he said.
Exetel CEO Richard Purdy, who will retain his position for a transition period under Tyler, says the deal will create a player of “genuine scale” that will be able to challenge the big operators.
“Importantly, it also creates increased opportunities for our people by becoming part of a larger, more diversified business, and enables our customers to gain access to a superior network.
“I have been impressed by the strong cultural alignment between our companies and the exciting prospects for the Exetel brand to continue to develop,” he said.
Exetel will continue to provide internet, VoIP, mobile, and communications services customers, including 100,000 homes and 12,000 businesses.