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SUPERLOOP Limited (ASX: SLC) is set to buy out Adelaide-based internet service provider (ISP) NuSkope Pty Ltd and associated entities.
The Brisbane-based fibre network giant will acqure NuSkope for $7 million in cash plus $3 million in SLC shares at an issue price of $2.457. The cash component will be funded from Superloop's cash reserves and available debt facility.
Bevan Slattery (pictured), CEO of the Superloop Group, says the acquisition includes a number of strategic assets such as an existing wireless network infrastructure and an energetic workforce with vast experience in the wireless internet sector.
"We are very excited to be working with NuSkope and expanding our reach in the strategically important Adelaide market," says Slattery.
"The NuSkope team has built a leading position in the South Australian market and has developed impressive systems and processes which will enhance our ability to service our wholesale customers and strengthen our ability to compete and meet growing customer demand across the region and in new areas."
NuSkope established in 2007 as a specialist wireless network provider, offering broadband to areas of Adelaide which were typically in broadband blackspots.
NuSkope has grown rapidly since its creation and in FY17 posted a customer revenue of more than $7.1 million and more than $2.4 million in earnings.
As well as acquiring NuSkope Pty Ltd, Superloop will also acquire associated entities RA-WIFI Pty Ltd and RA-ADSL Pty Ltd.
Completion of the acquisition is subject to due diligence, regulatory notifications and receiving approval for change of control under certain contracts.
The transaction is expected to be finalised during October 2017.
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