Michael Simmons (Uniti Wireless)
Uniti Group has reached into its pockets to front $532 million for the acquisition of wholesale network infrastructure operator OptiComm.
The company formerly known as Uniti Wireless will pay $407 million cash and 84 million Uniti shares valued at around $125 million.
According to the publicly listed company, the deal will provide them with a “more diverse telecommunications infrastructure company with a large pipeline of long-term growth opportunities”.
The deal is subject to a vote by OptiComm shareholders, with the acquisition expected to complete by the end of September.
Founded in 2005 in Port Melbourne, OptiComm is an independent carrier specialising in supplying FTTP network solutions to new residential and business units.
“OptiComm is highly complementary to Uniti’s existing fibre infrastructure business, providing an embedded pipeline of funded organic growth, increased fibre network build capability and a successful, skilled workforce to enhance our proposition to existing and prospective customers," said Uniti managing director and CEO Michael Simmons.
Last year, it announced plans to list on the ASX following a $42.3 million in capital raising and that it had chosen Juniper Networks to replace its entire core network infrastructure in order to double its reach across Australia.
This is the first acquisition Adelaide-based has made this half year of 2020, having bought network operator LBNCo for a $100 million last August.
Only months earlier, it had attempted to buy Spirit Telecom but was rebuffed by the Melbourne-based carrier.
According to Uniti, its absence from the M&A market recently has given estimated earnings $37 - $39 million for the 2020 financial year.
