Dark fibre provider Superloop is spending $5.8 million dollars to acquire Brisbane-based network services wholesaler APEX Networks.
Superloop, founded by serial tech entrepreneur Bevan Slattery who co-founded Pipe Networks and NextDC, owns and operates national fibre networks in Sydney, Melbourne, Brisbane and Singapore.
The deal will allow it to move into managed network services for the first time via APEX Networks, which supplies telecommunications access and data centre services through channel partners.
This includes co-location, hosting and consulting, with APEX providing consulting to system integrators and ISPs. APEX’s platform also includes service qualification tools through to ordering, provisioning, billing, support and network management.
The deal consists of $3.8 million in cash and $2 million in Superloop script and is expected to be completed by 16 October.
Co-founder Ryan Crouch will join Superloop as chief technology officer, while Matthew Gregg will stay on at APEX as general manager. APEX's nine employees will also stay on at the company.
Superloop chief executive Daniel Abraham’s said APEX’s platform is particularly important at a time when the company is expanding its fibre network into Singapore.
“The acquisition of APEXN allows Superloop to rapidly deploy a managed services capability for our wholesale and channel customers via APEXN’s IT and product platforms,” said Abrahams.
"We’re looking to see how to drive synergy in terms of leveraging our dark fibre network by offering networking managed service, giving customers the choice and opportunity for a one-stop shop," he told CRN.
"The acquisition expands our capabilities in terms of product platforms, service qualification tools and the way customers can order," he said.
Superloop recorded a loss of $1.2 million in its first year as a public company after the dark fibre business was spun-off from network virtualisation company Megaport in June.
The loss was attributed to the company still being in a construction and development phase, with its initial core networks in Australia and Singapore expected to be completed by the end of this calendar year.