Paul Tyler (Superloop).
Publicly listed Superloop has executed a subscriber transfer agreement to acquire all of MyRepublic’s 52,000 NBN subscribers at $250 per migrated subscriber as the latter exits the Australian market.
If all subscribers migrate across, this could value the deal up to approximately $13 million.
Effective from 23 December 2022, the agreement relates to the acquisition of subscribers only and does not include any assets or liabilities of the MyRepublic legal entity.
The bulk of MyRepublic customers are expected to migrate to the Superloop brand during February 2023.
MyRepublic claimed the customer acquisition is a result of it deciding to leave the Australian market, claiming it is effecting "a strategic refocus towards profitability and liquidity, lowering costs of operations and a renewed focus on its broadband and mobile businesses in Singapore."
“I love our Australian business. The amazing work that the team has done for MyRepublic these past few years has been a personal point of pride for me. After much deliberation however, we have made the decision to pivot towards a profitable business as we move into the next phase of our journey,” said Malcolm Rodrigues, group CEO and co-founder of MyRepublic.
Post-acquisition, Superloop said its consumer segment will continue to target gross margins of 25 per cent.
On a post synergy, pro-forma basis, the acquisition is expected to add $6.5 million in earnings before tax to Superloop in the first 12 months.
"This purchase is strongly accretive for shareholders as it provides growth at scale at a very attractive multiple of approximately 2x EBITDA [earnings before interest, tax, depreciation and amortisation] (post synergy)," Superloop CEO Paul Tyler said.
"Superloop’s unique, highly automated platform will allow for a seamless migration process with MyRepublic customers benefitting from Superloop’s attractive NBN plans.”
Last September, Superloop ramped up its standing in the tertiary student accommodation market with the planned acquisition of VostroNet for up to $50 million.
