SYDNEY, AUSTRALIA: Superloop Ltd (ASX:SLC) has executed a subscriber switch settlement to buy all of MyRepublic Pty Ltd’s 52,000 (approximately) NBN subscribers at $250 per migrated subscriber.
The settlement pertains to the acquisition of subscribers solely and doesn’t include any assets or liabilities of the MyRepublic authorized entity. The settlement is efficient from 23 December 2022 with completion anticipated shortly thereafter.
The bulk of MyRepublic customers are anticipated emigrate to the Superloop model throughout February 2023. The final buy price will be adjusted to mirror the precise variety of subscribers who will ultimately migrate to Superloop. Should all potential subscribers migrate, total consideration would be A$13,000,000 (approximately).
The acquisition will be instantly accretive with all synergies being realised throughout the migration course of and doesn’t contain any materials increase in Superloop working and capital costs. Post-acquisition, Superloop’s Consumer segment will proceed to focus on gross margins of 25%. On a post synergy, pro-forma basis, the acquisition is anticipated so as to add $6.5m of EBITDA to Superloop within the primary 12 months.
Superloop CEO, Paul Tyler said “We are delighted to welcome MyRepublic customers to the Superloop experience. This buy is strongly accretive for shareholders because it provides growth at scale at a really attractive a quantity of of roughly 2x EBITDA (post synergy).
Superloop’s unique, extremely automated platform will allow for a seamless migration course of with MyRepublic customers benefitting from Superloop’s attractive NBN plans.”