Why the Superloop (ASX:SLC) share price is accelerating 7% today

The Superloop (ASX:SLC) share price is on the move today following the company reporting a signed services agreement with MNF Group.

Aaron Teboneras

Author bio Aaron Teboneras is an ASX investment writer with a background in business, marketing and finance. He has been a contributor to The Motley Fool since 2020, covering market news, company announcements, broker views and financial results. Aaron’s previous notable appointments include National Australia Bank, and Computershare where he discovered his passion for the Australian sharemarket. Aaron has been investing for almost 20 years, using both fundamental and technical analysis to find opportunities. Aaron completed a Technical Analysis course with Mint Analysis in 2022 and is currently studying Training and Assessment. Outside the market, he has travelled to more than 45 countries and enjoys trekking, meeting new people and seeing different parts of the world. Areas of expertise ASX growth shares Founder-led companies Company announcements and financial results Fundamental and technical analysis Education Bachelor of Business from RMIT University Social media LinkedIn Instagram Favorite investment quote “If you don't find a way to make money while you sleep, you will work until you die.” — Warren Buffett

Published February 22, 2021 12:37 pm AEDT

Superloop Ltd (ASX: SLC) shares are on the move this morning following the company's announcement of a signed services agreement with MNF Group Ltd (ASX: MNF). At the time of writing, the Superloop share price is up 6.63% to $1.045.

Let's take a closer look at what the independent connectivity services provider updated the market with.

asx share price rising on deal represented by hand shake — Image source: Getty Images

What's driving the Superloop share price higher?

The Superloop share price is firmly in positive territory after the company reported a significant win that will boost its coffers.

According to its release, Superloop has been awarded a major multi-year contract with Symbio, a wholly-owned subsidiary of MNF Group.

Under the deal, Superloop will become the exclusive supplier of wholesale nbn aggregation services. This includes Symbio transferring all existing and future supply arrangements onto the Superloop Connect platform. In addition, it's anticipated that Superloop will take on a greater role in using Symbio's range of voice offerings.

Superloop shares are responding positively today after the company advised the new contract award is expected to generate revenue of more than $25 million. This represents the single largest deal the company has signed to date.

What is Superloop Connect?

Superloop Connect is an in-house-developed platform that offers nbn aggregation services to customers of any size. The platform enables accessing nbn backhaul and virtual nni capabilities that bring fast, reliable, secure connectivity layered with a range of managed services.

Management commentary

Superloop CEO Paul Tyler welcomed the new deal, saying:

We are excited that Symbio has chosen Superloop to underpin their nbn network services further building on our longstanding and successful relationship. The Superloop network has been designed for this very purpose and we've built significant capacity to cater for the continued growth we are anticipating across Australia.

CEO of MNF Group Rene Sugo added:

We selected Superloop to be our partner for the provision of nbn aggregation services due to the state-of-the-art Superloop Connect platform combined with the strength of their underlying network and looking forward to taking this long-term partnership from success to success.

The Superloop share price has tracked around 25% higher over the past 12 months.

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