- Network services provider Swoop (SWP) will acquire Beam Internet for $6.7 million
- Beam Internet is a South Australia-based wireless broadband provider, which Swoop believes will help to expand its business and enter new markets
- Additionally, the buy is expected to be earnings accretive based on Beam's expected FY22 earnings before interest, taxes, depreciation and amortisation of at least $1.6 million
- Swoop expects the acquisition will be completed in the next four weeks
- Company shares are up 8.89 per cent and trading at 98 cents
Swoop (SWP) has announced it will acquire South Australian-based wireless broadband provider Beam Internet.
Beam Internet offers high-speed wireless broadband on its own network of over 60 towers and masts and has over 3600 on-net residential and small-to-medium enterprise services in operation.
Positively for Swoop, Beam has forecast earnings before interest, taxes, depreciation and amortisation for the 2022 financial year of at least $1.6 million. Based on this, Swoop expects the acquisition to be materially earnings accretive.
Swoop will acquire the internet services company for $6.7 million which includes a $6 million cash payment and $700,000 in Swoop shares.
After re-listing on the ASX in May this year, Swoop kept its focus on expanding its infrastructure in both metropolitan and regional locations and seeking potential acquisitions after raising $20 million in capital.
The Australian fixed wireless and wholesale network infrastructure carrier sees the acquisition as a significant opportunity.
"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 South Australian market.
"We look forward to the opportunities this acquisition provides in establishing a South Australian presence for the Swoop brand."
Swoop expects the acquisition will be completed in the next four weeks.
Company shares were up 8.89 per cent and were trading at 98 cents at 3:46 pm AEST.