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

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

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.

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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Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of SUPERLOOP FPO. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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