Slattery snaps up Exetel and beefs up growth plans
Tech entrepreneur Bevan Slattery’s Superloop will buy Australia’s largest internet service provider Exetel for $110 million.
The costs will be funded by a $49 million placement to institutions, a $51 million entitlement offer and a scrip issue to Exetel shareholders worth $10 million.
Exetel has 110,000 residential and business customers and Superloop chief executive Paul Tyler said it would add significant scale to grow. The synergies from the deal are estimated to be about $5 million a year.
Exetel, founded by John Linton, is forecast to generate revenue of about $150 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $11 million.
Under the entitlement offer shareholders will be able to subscribe for one new Superloop share for every 6.67 existing shares at 93 cents.
Superloop is one of several tech companies founded by Bevan Slattery who remains as its chairman and major shareholder.
Superloop said its earnings guidance for 2021 was at a tightened range of between $18 million and $18.5 million.
It said continued growth in connectivity and consumer revenue had offset headwinds in the student accommodation sector.
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