Alex West (Swoop)
Fixed wireless and wholesale network infrastructure provider Swoop has picked up the business of one of its telco neighbours, Speedweb, in a deal worth $1.75 million.
The publicly listed telco told shareholders on 21 June that it had acquired Speedweb, a wireless broadband provider in the Gippsland and Latrobe Valley areas of Victoria, for $1.225 million in cash and $525,000 in Swoop shares.
According to Swoop, Speedweb provides high speed wireless broadband on its own network of over 50 towers and masts and has more than 1,800 services in operation.
The company’s network covers the towns of Morwell, Moe, Traralgon, Trafalgar, Churchill, Newborough and Walhalla, and borders Swoop’s current network in the West Gippsland area. As such the acquisition provides opportunities for Swoop to expand its network across that region and capture additional market share.
“Acquiring the neighbouring network in West Gippsland is a fantastic opportunity for Swoop, it will neatly increase the coverage of our existing regional infrastructure footprint,” Swoop CEO Alex West said.
“We look forward to the opportunities this acquisition provides in terms of expanding our market share in the Gippsland region and we welcome the Speedweb customers to Swoop,” he added.
Swoop Telecommunications began trading on the Australian Securities Exchange (ASX) in May, using the ticker SWP.
The telco player is backed by Tattarang -- the private investment group of Fortescue Metals founder and chair Andrew Forrest -- along with Vocus founder James Spenceley and Amcom founder Tony Grist, and is also be chaired by Spenceley.
In February, Swoop Telecommunications and NodeOne were acquired in a reverse takeover deal worth $61.3 million by publicly listed Stemify.
NodeOne CEO Richard Whitling said previously that joining forces with Swoop enabled the company to expand its expertise and internet services to Western Australia. NodeOne was founded in Geraldton in 2009 and was to continue to operate under its current brand in WA.
Swoop, formerly known as Cirrus Communications, was founded in 2004 and operates 220 towers across the country with 110 staff.
At the time of its listing on the ASX, West said that the public listing was a huge milestone for the business and would enable additional investment in its business strategy, which involves targeting regional markets with high speed fixed wireless offerings.
