Superloop’s acquisition of Optus subsidiary “Uecomm” is set to enhance its network footprint in key metropolitan areas, complementing its existing infrastructure.
The strategic expansion will boost the company’s ability to deliver high-speed data and internet services across its retail, business, and wholesale segments, reinforcing its position as a leading provider in the telecommunications sector.
Acquisition adds over 2,000 kilometres of high-capacity fibre assets, including 800 kilometres of owned duct, to Superloop’s network.
Currently, Superloop serves more than 455,000 retail, business, and wholesale customers, having gained around 80,000 customers in FY24.
Founded by Bevan Slattery, the company is rapidly growing its retail consumer base, which reached 323,000 by the end of FY24, with a goal of surpassing 500,000 by FY26.
The Uecomm fibre network spans Sydney, Melbourne, and Brisbane-Gold Coast central business districts and metropolitan areas, providing Superloop with access to over 1,900 buildings and approximately 50 data centres.
“The location of the assets also boosts our Smart Communities ambitions, lowering capex connections to new buildings and broadacre developments,” says Superloop CEO Paul Tyler.
In February, Superloop secured a deal with Investa to become the exclusive telecommunications infrastructure provider for two developments, housing over 1,100 residents.
In March, it followed up with another exclusive telco deal with Mirvac (ASX: MGR) for 1,400 lots across three proposed build-to-rent projects.
The company plans to finance its $17.5 million acquisition of Uecomm through existing cash reserves and debt facilities, with the deal expected to close early next year.
As of June, Superloop reported a cash balance of $3.6 million and maintained debt covenants well below thresholds, leaving the company with significant capacity for future mergers and acquisitions, as disclosed during its FY24 profit announcement.
While the Uecomm acquisition is expected to be EBITDA neutral in its first year, Superloop sees it as an opportunity to gain greater control over its expanded fibre network, anticipating long-term cost and revenue synergies.
Superloop remains focused on further growth under its three-year ‘Double Down’ strategy, aiming to double in size by FY26.
The strategy is supported by a 30% revenue increase to $420.5 million in FY24. The company also reported a 45% surge in underlying EBITDA to $54.3 million, along with $29.2 million in free cash flow—up by $6 million from the previous year.
Originally established as United Energy Telecommunications (UET) in 1996, Uecomm began as a telecommunications subsidiary providing high-capacity data services, leveraging fibre-optic infrastructure to cater to enterprise-level clients.
