Superloop Acquires Smart Building Provider VostroNet | VanillaMore
Super limited loop announces that it has entered into a sale and purchase agreement (SPA) to acquire VostroNet Holdings Pty Ltd, a wholesale provider of fibre-to-the-premises (FTTP) access networks and purpose-built broadband student accommodation. The acquisition consolidates and expands Superloop’s strong Managed Wi-Fi position in adjacent online broadband markets.
VostroNet is an infrastructure owner and Internet provider that provides high-speed FTTP networks and smart Wi-Fi networks for multi-unit residential buildings (MDUs) and sprawling developments served by VostroNet fiber optic networks. Major customers include UniLodge, Iglu Student Accommodation, Queensland University of Technology and Sunny Coast Council for Wi-Fi solutions and Billbergia, CBUS and Consolidated Properties for FTTP smart network infrastructure.
The combination of assets will provide a market-leading position in the provision of broadband in the tertiary student accommodation sector, providing nationwide coverage to approximately 40,000 student beds. As discussed in Superloop recent earnings call, it is encouraging to note that this market segment has now recovered to pre-COVID levels.
The acquisition represents the next step in Superloop’s strategy to grow its online smart communities division through the addition of FTTP capabilities, an installed base and a pipeline to address adjacent markets such as new developments, build-to-let, large-area and MDU markets and associated infrastructure builds. .
The consideration for the acquisition is AU [$35 million (€35.64 million)] (before customary completion adjustments), including AU [$24.5 million (€24.95 million)] in cash and AU [$10.5 million (€10.69 million)] in Superloop shares. Sellers may also be eligible for “top-up” payments (capped at AU [$15 million (€15.27 million)] in cash), subject to achieving certain take-up targets related to the sites under contract and obtaining [$2.1 million (€2.14 million)] execution synergies (expected to be achieved within 24 months of completion).
The acquisition will be financed from Superloop’s existing cash reserves. Subject to satisfaction of the conditions precedent to the sale, Superloop expects to complete the acquisition towards the end of the calendar year.
The vast majority of VostroNet’s revenue is recurring in nature with the online economy. On a pro forma basis for FY23, the acquisition will contribute approximately [$4.6 million (€4.68 million)] EBITDA (before synergies). When the price complement is fully realized (including the delivery of synergies), the resulting EBITDA multiple should be 7.5x.
Superloop Managing Director and CEO, Paul Tyler, said: “We are extremely pleased with this transaction, as in addition to strengthening our position in providing broadband services in the student housing market, it also adds capabilities in the increasing construction of rental housing and MDU markets. We welcome VostroNet employees to Superloop and look forward to deepening the relationship. »