Superloop acquires Uecomm assets for $17.5M

Superloop has recently acquired Optus subsidiary Uecomm for $17.5 million. This move allows Superloop to add over 2,000 kilometers of high-capacity fibre assets to its network. Uecomm’s fibre network is strategically located in central business districts and metropolitan areas in Sydney, Melbourne, Brisbane, and the Gold Coast, giving Superloop access to valuable infrastructure.

This acquisition will not only expand the size of Superloop’s network but also enhance its service offerings in key metropolitan areas. Superloop plans to leverage these assets to support and grow its high-speed data and internet services across its three key segments.

Superloop CEO Paul Tyler expressed excitement about the acquisition, emphasizing how these assets will drive the company’s Smart Communities initiatives. By gaining more control over a broader fibre network, Superloop aims to lower capex connections to new buildings and developments, ultimately benefiting their customers.

While the initial impact on earnings is expected to be neutral in the first year, Superloop anticipates achieving long-term cost and revenue synergies as a result of this acquisition. The company plans to fund this transaction through a combination of cash and existing debt facilities, with the deal slated to close in early 2025.

In related news, in October, Superloop announced a three-year deal with Leaptel for backhaul services. This partnership, valued at up to $5 million over the contract’s duration, underscores Superloop’s commitment to expanding its infrastructure and service offerings to meet the evolving needs of customers in the telecommunications landscape.