Telco Swoop has acquired Brisbane-based Optus mobile virtual network operator Moose Mobile for $24 million.
The acquisition expands Swoop’s mobile business, adding 94,000 customers on the Optus network, as well as its NBN reseller business.
Launched in 2017, Moose Mobile provides SIM-only mobile plans and NBN services across Australia, touting itself as a lower-cost alternative with competitive pricing and mobile data allowances.
“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 chief executive 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 $24 million purchase price comprises $19 million in cash, funded from Swoop’s debt facility with Westpac, and $5 million in Swoop shares. The telco said the acquisition is expected to complete on 1 August 2022.
West added, “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.”
“This acquisition is also in line with our previous transactions in that is provides strong cash generation, with a very high proportion of the EBITA converting to cash that continues our strong positive net operating cash flow; and brings the overall group closer to Free Cash Flow after our capital investments, heading into the next financial year.”