South Australian company Beam Internet has been acquired by fixed wireless and wholesale network infrastructure provider Swoop Holdings Limited.
Swoop on July 12 announced the acquisition of the regional South Australian wireless broadband provider for an enterprise value of $7.2 million.
Beam Internet is the largest privately owned, fixed wireless network in regional South Australia, offering high-speed wireless broadband on its own network of over 60 towers and masts.
The Beam network has more than 3600 on-net residential and SME services in operation, covering the Fleurieu Peninsula, Barossa, Kangaroo Island, Mid North, Murray Bridge and South East regions in South Australia, and also parts of the West Victoria and Mallee regions in regional Victoria.
Beam Internet founder Josh Helbig said he was excited about the new chapter and there were no plans to change the office location from Nuriootpa in the Barrosa Valley.
"I am excited to see the network continue to grow and cover more of regional South Australia," Mr Helbig said.
On Kangaroo Island, local technician Damon Hagerstrom will remain the local reseller of Beam Internet and will continue to service the community.
The acquisition comes within weeks of several other acquisitions including regional wireless broadband provider, Speedweb, and Perth based, residential and business fixed wireless provider, Community Communications (ComComs).
Swoop CEO, Alex West stated acquiring Beam was another fantastic opportunity for Swoop to expand its infrastructure coverage.
"Beam has a recently upgraded and well-built modern network, which aligns with our own national network and gives us a strong springboard for growth into the SA market," Mr West said.
"We look forward to the opportunities this acquisition provides in establishing a South Australian presence for the Swoop brand."
Bonitz Advisory is acting as Swoop's M&A adviser on this transaction, Maddocks is acting as legal adviser and PKF as tax adviser.
- Swoop has entered into an agreement to acquire 100 per cent of South Australian-based wireless broadband provider Wan Solutions Pty Ltd (trading as Beam Internet)
- Purchase price of $6.7 million on a "cash free debt free basis" comprising $6.0 million in cash and $700,000 in Swoop shares.
- Beam FY22 EBITDA is forecast to be at least $1.6m.
- Under the agreement, $1.3m of the cash consideration will be held back for 12 months for any potential claims or adjustments.
- Based on the forecast EBITDA, the acquisition is expected to be materially earnings accretive.
- The cash component of the acquisition will be funded from existing cash reserves and is expected to be completed within 4 weeks.
- Consideration shares will be subject to 12 months escrow.
- Swoop has no bank debt and is progressing a material working capital and acquisition debt facility.