Dark fibre provider Superloop has spent $3 million to acquire Cinenet Systems, an Adelaide-based provider of high-speed networks specifically aimed at digital media studios to transfer large files and connect infrastructure providers.
Founded in 2003, the company has network connections to media businesses in Brisbane, Sydney, Melbourne, Adelaide and Los Angeles.
The transaction will be paid for with $1.5 million cash and $1.5 million in Superloop script.
Cinenet will continue to operate as its own brand under Superloop, with chief executive Tony Clark joining the Superloop board of directors.
“Joining the Superloop group allows Cinenet to continue to provide services to our existing customers, with the ability to access increased network and data centre coverage across the APAC region and is looking forward to playing an on-going role is driving the strategic future of the Superloop group,” said Clark.
Superloop chief executive Daniel Abrahams said the acquisition would bring over a portfolio of customers and establish a gateway for Superloop into the US. “The acquisition of Cinenet provides Superloop an opportunity for the company to quickly expand its network capabilities into the fast-growing digital media vertical which is currently experiencing massive growth,” said Abrahams.
Last month, Superloop spent $5.8 million to acquire Brisbane-based network services wholesaler APEX Networks. That deal allowed Superloop to move into managed network services for the first time, including co-location, hosting and consulting.
Superloop was 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 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 December.