The Superloop Ltd (ASX: SLC) share price is in focus today after the company announced it has completed its $165 million acquisition of Lightning Broadband, significantly expanding its national fibre presence and accelerating its Smart Communities strategy.
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What did Superloop report?
- Acquisition of 100% of Lightning Broadband for $165 million in cash
- Lightning Broadband operates an open-access wholesale FTTP network across 400+ developments
- Approximately 56,000 lots secured, including 16,000 services in operation as at April
- Acquisition funded by cash and debt; net debt post-acquisition expected to be about 1.4x EBITDA
- Joint Functional Separation Undertaking now approved and effective
What else do investors need to know?
The acquisition marks a major step forward for Superloop's Smart Communities growth strategy, expanding its fibre-to-the-premises (FTTP) reach across six Australian states and territories. By integrating Lightning Broadband, Superloop strengthens its position as a challenger in the national FTTP market.
The approval and commencement of the Joint Functional Separation Undertaking by the ACCC ensures that Superloop's wholesale FTTP activities will operate within a clearly separated and regulated framework, enhancing transparency and access for retail service providers.
What's next for Superloop?
Superloop is expected to focus on integrating the Lightning Broadband business into its existing operations and leveraging its open-access FTTP infrastructure to attract new retail partners. The company will continue advancing its Smart Communities platform, aiming to grow its footprint and service capability nationwide.
With net debt remaining low post-acquisition, Superloop states it will maintain financial flexibility to pursue further growth, while the JFSU is set to support healthy competition in the wholesale fibre market.
Superloop share price snapshot
Over the past 12 months, Superloop shares have risen 29%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
