Telecommunications provider, Superloop, has entered into an agreement to acquire BigAir, in a transaction valued at up to $95 million.
As revealed via the ASX, the deal is expected to close in December, subject to BigAir shareholder and court approval.
With BigAir directors unanimously recommending that shareholders vote in favour of the move, the proposed acquisition comprises of two alternatives, the first being shares in Superloop or a combination of shares and cash, with the cash component of the second option subject to a $95 million cap.
Founded by CEO Bevan Slattery - who also co-founded PIPE Networks with Steve Baxter, as well as NEXTDC - Superloop is Asia’s newest telecommunications provider, connecting internet Points of Presence (POPs) in key markers across the region.
As reported by ARN, Superloop, which was spun out of network virtualisation company, Megaport, recently reported a loss of $7.2 million, citing infrastructure and acquisition costs as key factors.
Terms of the acquisition however will see BigAir - which acquired Oriel Technologies in November 2014 - assist Superloop in its quest to become the region’s leading independent provider of connectivity services.
“The acquisition of BigAir will allow us to leverage our fibre network plus provide us with new wireless capabilities to deliver low cost gigabit connectivity,” Slattery said.
Currently, BigAir owns and operates one of Australia’s largest metropolitan fixed wireless broadband network, providing cloud and managed services solutions to mid-sized companies.
For Slattery, the acquisition “fundamentally enhances” opportunities for Superloop’s fibre business, allowing the company to accelerate the rollout of fibre across Australia.
Terms of the deal will see Superloop carry BigAir’s wireless and “fibre extender” capability, and build a low-cost access alternative for Gigabit+ speeds.
In addition, the BigAir managed service offerings will be restructured and rebranded to create a “fully integrated and focused” managed service provider business with a “clear statement” on market position and product offerings.
“The benefit that Superloop’s experience, capabilities and fibre infrastructure brings to the BigAir offering are transformational, and I am excited to work together with Bevan as part of Superloop,” BigAir CEO, Jason Ashton, added.