Superloop has announced an agreement to acquire GX2 Holdings and its subsidiaries for $12 million.
GX2 is a provider of Wi-Fi services for major hotel chains, student accommodation sites and schools. GX2, who was formerly known as Global Gossip, has offices in Sydney, Melbourne and Brisbane in Australia, London in the UK, Denver in the US, Taupo in New Zealand and in Nadi and Suva in Fiji.
GX2 Technology counts Ruckus, Cisco Meraki, HP Aruba Networks and Cisco among the vendors with which it partners.
GX2 generated revenue from installation, ongoing management fees and hardware sales of over $9.2 million for the 2017 financial year.
“We are excited to be joining the Superloop Group to continue the expansion of our offering,” GX2 CEO and co-founder, Anthony van der Byl, said. “Combining Superloop’s existing systems and infrastructure will help us accelerate into more markets across Australia and overseas.”
Upfront consideration for includes $6 million in cash plus $4 million in Superloop shares at an issue price of $2.38. The cash component will be funded from Superloop’s cash reserves and available debt facility.
The vendors of GX2 will receive further deferred consideration of $2 million payable in cash in instalments in the two year period from completion.
The acquisition is part of Superloop’s strategy of be the most trusted enabler of connectivity and managed services in Asia Pacific. According to the company the acquisition will enable the company to accelerate its ability to significantly expand its community broadband campus solutions to the broader customer base in Australia and overseas;
GX2 has technology, software and systems that will add significant value to the combined group and assist in further strengthening our offerings to the market, Superloop told shareholders.
"Over the past 10 years GX2 has developed one of the most comprehensive software platforms for managing large scale guest Wi-Fi networks with an emphasis on providing granular control and visibility to operators of hotels, student accommodation, parks almost anywhere where there is guest Wi-Fi access,” Superloop Group CEO, Bevan Slattery, said.
“This acquisition provides three main opportunities. 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.”
GX2 provides managed services for over 200 customers at over 350 sites with 75 per cent in the Asia Pacific region.
The acquisition is subject to conditions and it is expected to be completed during November.
In September, Superloop announced plans to acquire South Australian fixed wireless internet services provider, NuSkope, for $10 million.
Earlier in April, the company acquired telecommunications infrastructure company, SubPartners for US$2.5 million. In September last year, the company entered into an agreement to acquire BigAir, in a transaction valued at up to $95 million.