Swoop continues spending spree, acquiring regional SA-based Beam Internet

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Swoop continues spending spree, acquiring regional SA-based Beam Internet
Alex West (Swoop)

Wholesale network infrastructure provider Swoop has acquired SA wireless broadband provider Wan Solutions Pty Ltd, trading as Beam Internet, for a purchase price of $6.7 million, with a total enterprise value of $7.2 million.

The purchase of Beam will be made with $6 million in cash and $700,000 in shares. 

The company has been on a spending spree since it debuted on the ASX in May. This latest acquisition comes less than a month after the purchase of two other telcos, Perth-based Community Communications and regional Victoria-based Speedweb.

Beam Internet is the largest privately owned fixed wireless network in regional South Australia and offers wireless broadband on its own network with over 60 towers and masts. It has more than 3,600 on-net residential and SME services in operation. 

The Beam network covers the Fleurieu Peninsula, Barossa, Kangaroo Island, Mid North, Murray Bridge and South East regions in South Australia, and also parts of the West Victoria and Mallee regions in regional Victoria.

Swoop chief executive Alex West stated, “Acquiring Beam is another fantastic opportunity for Swoop to expand our infrastructure coverage into regions we do not have infrastructure. Beam has a recently upgraded and well-built modern network which aligns with our own national network and gives us a strong springboard for growth into the SA market. We look forward to the opportunities this acquisition provides in establishing a South Australian presence for the Swoop brand”.

Beam’s EBITDA for FY22 is expected to reach $1.6 million which, Swoop said, would make the acquisition earnings accretive.

The cash component of the acquisition is expected to be completed in four weeks.

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