Adelaide-based telco Uniti Group has announced it will acquire fibre network operator OptiComm for $532 million.
Headquartered in Melbourne, OptiComm operates a fibre-to-the-premises network across Australia servicing both residential and business customers, including retirement living, community and commercial clients.
Uniti Group called OptiComm a “large scale national private fibre challenger” with the ability to “accommodate future bandwidth needs” and provide opportunities to expand into enterprise and business segments.
Uniti Group chairman Graeme Barclay said the acquisition accelerates the company’s strategy in private fibre infrastructure ownership.
“Shareholders are expected to benefit from significant value creation from this transformational transaction and from the combined scale and capabilities of a more diverse telecommunications infrastructure company with a large pipeline of long-term growth opportunities,” Barclay added.
“The Uniti board is confident that we are well placed to significantly grow the fibre footprint, and maximise the efficiencies of the combined businesses to drive long-term, sustainable shareholder value.”
Uniti Group also released its earnings guidance for FY2020, upgrading it from $35 million to $37 million to $38 million to $40 million after the company performed above management forecasts.
Uniti managing director Michael Simmons said OptiComm is “highly complementary” to Uniti’s existing fibre infrastructure business.
“OptiComm will strengthen Uniti’s position in the consumer FTTP market while accelerating our entry into identified adjacent market segments such as retirement living, commercial precincts, enterprise and brownfield markets,” he said.
“Our earnings growth in H2 FY20 and increased guidance without an acquisition being completed in H2 is evidence of our ability to integrate acquisitions to achieve efficiencies and growth. We are confident of achieving the same outcome for shareholders from the OptiComm acquisition.”