Publicly listed fixed wireless and wholesale network infrastructure provider Swoop has purchased Queensland-based national mobile virtual operator Moose Mobile for $24 million.
Moose currently provides more than 94,000 mobile services on the Optus network via a mobile virtual network operation (MVNO) agreement.
The purchase is a mix of $19 million in cash and $5 million in Swoop shares. A further $2.85 million of the cash payable on completion will be held in escrow for six months for any potential claims and adjustments.
“This is an exciting time for Swoop to be joined by the amazing founders and team from Moose who have specialised in marketing mobile services to residential customers,” Swoop CEO Alex West said.
“Their subscriber growth has been outstanding over the last few years with over 94,000 active customers and increasing aggressively in recent times and are motivated to achieve more as a combined group.
“The most exciting part is the cross-sell potential into the residential broadband space, with over 94,000 users a target to provide Swoop Fixed Wireless and NBN internet services through; as well as nearly 26,000 Residential Swoop customers that could receive a Moose mobile service.
West said the acquisition was also in line with its previous transactions in that it provides strong cash generation, with a very high proportion of the EBITA converting to cash.
The cash component of the acquisition will be funded from Swoop’s Westpac debt facility and is aiming to complete the deal on 1 August.
In February, Swoop acquired Luminet and its Sydney-based dark fibre network for $8 million. It also bought the dark fibre network assets and customers of Adelaide-based network company iFibre in January.