has ramped up its standing in the tertiary student accommodation market with the planned acquisition of VostroNet for up to $50 million, earn-out payments inclusive.
VostroNet is an infrastructure owner and internet provider, offering fibre-to-the-premises (FTTP) and Wi-Fi networks for multi-dwelling units (MDU) and broadacre developments.
Its key customers include the likes of UniLodge, Iglu Student Accommodation, Queensland University of Technology and Sunshine Coast Council for Wi-Fi solutions and Billbergia, CBUS and Consolidated Properties for FTTP network infrastructure.
In a statement to the Australian Securities Exchange (ASX), Superloop claimed the acquisition will push it to “deliver a market-leading position in the supply of broadband in the tertiary student accommodation sector,” boosting its coverage to approximately 40,000 student beds.
The deal is priced at an initial $35 million, consisting of $24.5 million in cash and $10.5 million in Superloop shares.
Additionally, earn out payments capped at $15 million are also available, bringing the total cost to $50 million, which are subject to meeting certain take-up targets related to contracted sites and obtaining $2.1 million of run-rate synergies (assumed to be realised within 24 months of completion).
"We are extremely pleased with this transaction as in addition to strengthening our position in the provision of on net broadband services to the student accommodation market, it also adds capability in the growing build to rent and MDU markets,” said Superloop managing director and CEO Paul Tyler.
“We welcome the employees from VostroNet to Superloop and look forward to deepening the relationship.”
In its financial report for FY22, Superloop saw total revenue rise 137 per cent year-on-year, to $262.5 million, while net profit after tax plummeted 82.5 per cent to $52.6 million into the red.