Superloop to acquire Exetel for $110m

Superloop to acquire Exetel for $110m

08 June 2021 | Natalie Bannerman

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Superloop has announced its intent to acquire Exetel, an Australian Internet Service Provider, for $110 million.

According to the company, the deal has been funded by a fully-underwritten capital raise, and support from Superloop's banks.

Once completed, the acquisition will increase Superloop's revenue by more than double, to a pro forma figure of $261 million. In addition, the company’s pro forma EBITDA will benefit from an increase of 89% to approximately $34 million, this includes savings of approximately $5 million per annum in network synergies.

"This acquisition is part of our strategy of accelerating utilisation of Superloop's APAC network that we have built across the main metropolitan centres here in Australia, and in Singapore and Hong Kong. It's the latest example of our approach to drive growth and scale across the three distinct customer segments of consumers, business and wholesale,” said Paul Tyler (pictured), CEO of Superloop.

All of Exetel's some 290 employees will join Superloop, growing the total workforce to approximately 550 people. This includes a newly combined business sales team that will cross-sell new products over the combined network footprint to both customers.

As for its senior leadership team, Exetel's CEO Richard Purdy will continue to lead Exetel for a transition period, reporting to Superloop's Paul Tyler. Both brand names will remain.

“The combination of our business with Superloop will create a player of genuine scale, able to take the challenge to the large incumbent operators which has been part of the Exetel DNA from the outset," said Richard Purdy, CEO of Exetel.

“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.”

As for the division of services, Exetel will continue to provide Internet, telephone (VoIP & mobile) and communications services while its backhaul services will be migrated to Superloop's network, including automated network capacity management.

"The migration of Exetel's users to the Superloop backhaul network also strengthens our wholesale offering by increasing its scale," added Tyler.

"It adds critical mass to our wholesale business, will strengthen our backhaul network, and allows us to accelerate the automation of NBN connectivity and management using the Superloop Connect platform."