Fixed wireless and wholesale network infrastructure provider Swoop has acquired South Australia-based wireless broadband provider Beam Internet for a total of $6.7 million.
Under the terms of the deal, which is expected to close in one to three weeks' time, the publicly listed provider will pay $6 million in cash and $700,000 in its own shares for the provider, with $1.3 million of the cash to be held back for 12 months for any potential claims and adjustments.
Beam Internet offers wireless broadband to regional South Australia with a network of over 60 towers and masts, and has over 3,600 on-net residential and small- to medium-sized enterprise (SME) services in operation.
Areas covered by the network include the Fleurieu Peninsula, Barossa, Kangaroo Island, Mid North, Murray Bridge and South East regions in South Australia, and also parts of the West Victoria and Mallee regions in regional Victoria.
The acquisition has an enterprise value of $7.2 million, according to the infrastructure provider, and Beam’s forecasted earnings before interest, tax, depreciation and amortisation (EBITDA) of at least $1.6 million are expected to be materially earnings accretive.
Swoop CEO Alex West told ARN that there are no plans to change the Beam brand at this stage, as he views it as “a strong performer in its markets”.
There are also no plans to alter Beam’s team of nine employees.
“[They] are a very small team of talented individuals and we look forward to welcoming them to the Swoop group,” West said.
In a statement to shareholders lodged with the Australian Securities Exchange (ASX), West also said the acquisition was a “fantastic” opportunity for Swoop to expand its infrastructure into locations where it does not yet have a presence.
“Beam has a recently upgraded and well-built modern network which aligns with our own national network and gives us a strong springboard for growth into the SA market,” he said. “We look forward to the opportunities this acquisition provides in establishing a South Australian presence for the Swoop brand”.