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Superloop deepens its stake in the student market with $35m deal

Brisbane company Superloop has increased its stake in the student market with the purchase of VostroNet in a cash and shares deal worth $35 million.

Sep 26, 2022, updated Sep 26, 2022
Superloop has increased its presence in the student market

Superloop has increased its presence in the student market

VostroNet is an internet provider for multi-dwelling and broadacre development. Key customers include UniLodge, Iglu Student Accommodation, QUT and Sunshine Coast Council.

Superloop said the combination of assets would deliver a market-leading position in the supply of broadband to the tertiary student accommodation sector and deliver coverage to about 40,000 beds.

It said this market segment had recovered to its pre-Covid levels.

The deal included $24.5 million in cash and $10.5 million in Superloop shares. There was also an earn-out agreement capped at $15 million, which was subject to take-up targets.

The deal would be funded through Superloop’s cash reserves.

The company said the deal would contribute $4.6 million of EBITDA before synergies. If the earn-out was fully achieved the EBITDA multiple would be 7.5 times.

 

 

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