SUPERLOOP ADAPTS TO SCREEN WITH ACQUISITION

Written on the 23 November 2015

SUPERLOOP ADAPTS TO SCREEN WITH ACQUISITION

TELECOMMUNICATIONS company Superloop (ASX:SLC) has diversified into broadcast media, after acquiring CINENET Systems for $3 million.

Established in 2003, CINENET has built a specialised high-speed broadband data network aimed at the broadcast media industry.

The network is used by movie studios, movie producers, editing facilities, visual effects providers, sound facilities and DVD producers to create and exchange large digital assets and connect to infrastructure providers.

Media businesses in Brisbane, Sydney, Melbourne and Adelaide are interconnected through CINENET's point of presence in Los Angeles.

Superloop CEO Daniel Abrahams says the acquisition will allow the company to tap into the media industry, as well as the US market.

"The acquisition of CINENET provides Superloop an opportunity for the company to quickly expand its network capabilities into the fast-growing digital media vertical which is currently experiencing massive growth," Abrahams says.

"Furthermore the CINENET acquisition brings a great portfolio of customers and establishes an international gateway for Superloop and our customers in the United States."

Superloop chairman Bevan Slattery (pictured) says with CINENET specialising in screen media, the acquisition was an attractive opportunity to enter a new market.

"Digital media is one of the key growth industry verticals that Superloop has identified for opportunity given the massive growth in video consumption," Slattery says.

The deal consists of $1.5 million from cash reserves and $1.5 million in Superloop scrip issued at the average price for the 30 trading days leading up to November 20.

CINENET CEO and executive director Tony Clark will join the Superloop board as a non-executive director.

"Joining the Superloop group allows CINENET to continue to provide services to our existing customers, with the ability to access increased network and data centre coverage across the Asia-Pacific region and is looking forward to playing an ongoing role in driving the strategic future of the Superloop Group," Clark says.

CINENET has assisted with productions including The Great Gatsby, Batman Begins, X-Men Origins: Wolverine and the Harry Potter series.

The company is earnings and cash flow positive with established clients and recurring revenue streams forecast to reach $2 million this financial year.

The transaction is expected to be finalised on November 30.

 


Latest News

CROMWELL CALLS FOR FULL DISCLOSURE FROM INVESTA

CROMWELL Property Group (ASX:CRM) has claimed Investa Office Fund (ASX:IOF) has not disclosed material information ab...

FRAUD CAUSES SILVER CHEF PROFIT SLIDE

EQUIPMENT financier Silver Chef (ASX:SIV) has seen its half-year profit slide due to fraud.

The Brisbane company r...

MEGAPORT QUADRUPLES REVENUE AND INVESTS IN EXPANSION

MEGAPORT (ASX: MP1) increased revenue 345 per cent to $4.46 million in the six months to 31 December 2016, the com...

IN-STORE VETS BOOST GREENCROSS' PROFIT

GREENCROSS Limited (ASX: GXL) shares lifted 5 per cent in trading today after the Brisbane-based company posted a ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter