Optus sells Uecomm to Superloop for $17.5m

Optus is to sell its subsidiary Uecomm to Superloop for $17.5 million following a “strategic review”.

The deal will see Optus offload 2000 kilometres of high-capacity fibre assets, including in Sydney, Melbourne and Brisbane.

According to a Superloop announcement on the Australian Securities Exchange [pdf], the deal will also provide access to more than 1900 buildings and around 50 data centres.

The deal will also see Optus enter into a supply agreement with Superloop, under which it will acquire capacity on the Uecomm network.

Originally founded as United Energy Telecommunications (UET) in 1996, Uecomm was bought by Optus in 2004 for $227 million.

In a statement to iTnews, an Optus spokesperson said: “[The deal] follows a strategic review which identified an opportunity to rationalise and optimise Optus’ fibre assets.

“For most Uecomm customers, there will be no change – Optus will maintain relationships and connectivity for them," the spokesperson said.

"Optus will continue to manage relationships with those customers to ensure they can access the required fibre to meet their needs and receive the same level of support they’ve come to expect from us.”

The spokesperson added that a “small number” of customers will transition to Superloop.

The deal, which Superloop said it will fund the deal with cash and existing debt facilities, is expected to complete in early 2025.

“The location of the assets also boosts our smart communities ambitions, lowering capex connections to new buildings and broadacre developments," Superloop CEO Paul Tyler said.