Superloop is set to acquire retail service provider Exetel for $110 million in cash and shares, marking further consolidation in the Australian broadband market.
The purchase will bring 110,000 consumer and business customers onto Superloop’s books.
“The acquisition of Exetel - Australia’s largest private ISP - adds significant scale to grow [the] profitable share of our three customer segments,” Superloop CEO Paul Tyler said in a financial filing.
“Integration of Exetel into Superloop’s existing networks brings super fast, super easy and super reliable connectivity to three times more homes and businesses.”
Superloop said its offer comprised of $100 million cash - to be raised - and $10 million in shares.
The capital raising includes both institutional and retail offerings.
Superloop had entered a trading halt earlier this week pending an acquisition, leading to a day of speculation over the future of Exetel.