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.
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.
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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.
