ASX-listed Swoop Telecommunications has acquired Morwell, Victoria-based broadband network operator Speedweb for $1.75 million.
Speedweb, also known as Kallistrate Pty Ltd, operates its own wireless broadband network through some 50 towers and has 1,800 active services.
The company’s network covers the towns of Morwell, Moe, Traralgon, Trafalgar, Churchill, Newborough and Walhalla in Victoria’s Gippsland region. The network also borders the existing Swoop network in the region.
The acquisition is Swoop’s first since listing on the ASX less than one month ago when the company raised $20 million in capital.
Chief executive Alex West said the deal aligns with Swoop’s strategy of growing its residential and business fixed wireless infrastructure by expanding its footprint into new and adjacent regional areas.
“Acquiring the neighbouring network in West Gippsland is a fantastic opportunity for Swoop, it will neatly increase the coverage of our existing regional infrastructure footprint,” West said.
“We look forward to the opportunities this acquisition provides in terms of expanding our market share in the Gippsland region and we welcome the Speedweb customers to Swoop.”
The $1.75 million purchase price comprises $1.225 million in cash and $525,000 in Swoop shares. It represents 3.5 times expected normalised run rate EBITDA of Speedweb for FY21 of $500,000.
The deal is set to complete on 30 June 2021.