Swoop has announced a three-year partnership to migrate Flip’s broadband customer accounts, currently numbering 26,000 and growing, onto its network.
The transition is set to be completed by the end of January 2025. Once Flip’s existing subscriber base is fully integrated, the agreement is projected to generate $30 million in revenue, with additional potential as Flip continues to expand its customer base.
Alex West, Swoop Chief Executive Officer, said, “We are very excited to announce our partnership with Flip. Flip has demonstrated a fantastic ability to grow in the consumer broadband space, along with their complementary services,”
“At Swoop we are committed to assisting Flip in its growth ambitions by providing network saleability and the right commercial model and we are confident that this partnership will deliver strong revenue growth in coming years,” West said.
“This is an extremely exciting time for Swoop as we continue to focus on high-speed, high margin, long-life, infrastructure style products that not only allow us to connect people and improve lives but deliver great returns for the business.” he said.
David Michaels, Swoop Chief Revenue Officer, said “After several years in development Swoop now has an automated order to connection stack that enables our wholesale customers to get on with what they do best,”
“Working with Flip on this partnership has been great. Flip has demonstrated exceptional growth and focus on delivering great customer experience and has chosen Swoop’s VISP (Virtual Internet Service Provider) product to further this success.” Michaels said.
Although the wholesale product has a lower margin, the contract is expected to be significantly profitable and cash flow positive highlighting Swoop’s dedication to supporting Flip’s growth while reinforcing its standing in the telecommunications sector.
The agreement also contains customary warranties, indemnities and limitation of liability clauses that apply to each party, as well as customary termination provisions, including the right to terminate for material breaches (without rectification) and insolvency events
The deal comes after Swoop issued a Target’s Statement to the ASX on December 23, 2024. In the statement, Vonex directors unanimously advised shareholders to reject Swoop’s $0.04 per share acquisition offer, asserting it was superior to MaxoTel’s earlier bid of $0.0375 per share.
