MyRepublic Sold to SuperLoop
Posted: Sun Dec 25, 2022 10:19 am
- SYDNEY, AUSTRALIA: Superloop Ltd (ASX:SLC) has executed a subscriber transfer agreement to acquire all of MyRepublic Pty Ltd’s 52,000 (approximately) NBN subscribers at $250 per migrated subscriber.
The agreement relates to the acquisition of subscribers only and does not include any assets or liabilities of the MyRepublic legal entity. The agreement is effective from 23 December 2022 with completion expected shortly thereafter.
The bulk of MyRepublic customers are expected to migrate to the Superloop brand during February 2023. The final purchase price will be adjusted to reflect the exact number 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 immediately accretive with all synergies being realised during the migration process and does not involve any material increase in Superloop operating and capital costs. Post-acquisition, Superloop’s Consumer segment will continue to target gross margins of 25%. On a post synergy, pro-forma basis, the acquisition is expected to add $6.5m of EBITDA to Superloop in the first 12 months.