SUPERLOOP'S RAPID GROWTH CONTINUES WITH ACQUISITION OF WIFI COMPANY
Written on the 8 November 2017 by Ben Hall
Fibre infrastructure company Superloop Limited (ASX: SLC) has continued its aggressive expansion strategy by signing a deal to acquire managed connectivity services provider GX2 Holdings.
The Brisbane-based Superloop will pay $6 million in cash and $4 million in SLC shares for GX2 which provides high performance WiFi networks for major hotels, student accommodation sites and schools in five countries.
GX2 is able to service over 50,000 guests for over 200 customers in 350 sites around the world and it generated revenue from installation, ongoing management fees and hardware sales of more than $9.2 million for the 2017 financial year.
Bevan Slattery (pictured), CEO of the Superloop Group, says the deal will benefit both companies.
"Over the past 10 years GX2 has developed one of the most comprehensive software platforms for managing large scale guest WiFi networks with an emphasis on providing granular control and visibility to operators of hotels, student accommodation, parks almost anywhere where there is guest WiFi access," Slattery says.
"This acquisition provides three main opportunities," he says.
"First to support and accelerate the GX2 platform further internationally, secondly for Superloop to leverage this platform at our existing community broadband locations and finally to develop new leading-edge offerings in combination with the Superloop network across Asia."
Anthony van der Byl, CEO and co-founder of GX2, says the deal with Superloop will allow GX2 to expand its products further through its main market in Asia Pacific and the US and UK.
"We are excited to be joining the Superloop Group to continue the expansion of our offering," van der Byl says.
"Combining Superloop's existing systems and infrastructure will help us accelerate into more markets across Australia and overseas."
Last month Superloop acquisition of South Australia-based fixed wireless internet service provider NuSkope and its associated entities RA-WIFI and RA-ADSL for a total of AU$10 million.
Superloop announced the acquisition of submarine cable construction company SubPartners for $2.5 million in April, and in September last year it announced the acquisition of business-focussed IT provider BigAir.
Superloop provides digital services in the Asia Pacific and owns more than 600km of fibre networks in Australia, Singapore and Hong Kong which connects more than 250 of the region's key data centres and commercial buildings.
Serial entrepreneur Slattery founded online educational company iSeek in 1998 and sold it for $27 million in 2000, then started Pipe Networks with Steve Baxter which they sold to TPG Telecom (ASX: TPM) in 2010 for $430 million.
Then it was NextDC (ASX: NXT), a data centre provider, also in 2010 and since then he founded Superloop in 2014 as a spinoff from Megaport (MP1), an interconnection service.
Business News Australia
Author: Ben Hall