Superloop pays $1.5M for SkyMesh broadband customers
- 12 June, 2018 10:54
Superloop founder and CEO Bevan Slattery
Superloop (ASX:SLC) has acquired the fibre broadband customer base of SkyMesh for $1.5 million.
SkyMesh is a subsidiary of UK-headquartered BigBlu Broadband (BBB), formerly known as Satellite Solutions Worldwide Group.
SkyMesh is one of BBB's eight brands. It was established in 2005 in Brisbane and offers local National Broadband Network (NBN) accredited advisors seven days a week. SkyMesh will keep its satellite and wireless customers.
The deal sees Superloop add more than 10,000 broadband subscribers to its newly formed retail broadband division Superbb.
The customer base will be migrated into Superbb's new platform, which is expected to go live in October.
“This is an attractive acquisition, kickstarting our position in the retail nbn marketplace and complementing our NuSkope acquisition late last year," Superloop CEO Bevan Slattery said.
As part of the acquisition, close to 30 staff in network and support and call centre will move to Superloop, Slattery told ARN.
Superloop expects to be able to disrupt the internet services provider (ISP) market dominated by the "big four" with the SkyMesh acquisition.
“We will be bringing a business class experience to the residential customer, something that is missing in the market right now," Drew Kelton said.
Founder and CEO Slattery announced in March he was going to step down as CEO with Kelton replacing him.
Kelton is CEO of cloud-based payments platform provider, SecureCo, former vice president and managing director of DocuSign in Asia Pacific, and a director at Megaport.
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.
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.
SkyMesh originally made three legal claims against IPSTAR Australia arising out of the commercial relationship between the two companies, which saw the local ISP use the Thai company’s satellite infrastructure to provide broadband access in rural and regional Australia.
IPSTAR imported equipment into Australia that was intended to enable customers to connect to its satellite network. That equipment was sold by IPSTAR to SkyBridge, which sold it on to SkyMesh, who then sold it to end consumers.
In the initial case between the two companies, which was heard in the NSW Supreme Court last year, SkyMesh alleged that the equipment was defective, not of merchantable quality and not fit for the purpose for which customers required the equipment, according to court documents.
The “defective goods claim” against IPSTAR was worth around $2.2 million.