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- Uniti has made another big purchase, adding OPENetworks to its portfolio for over $27 million
- Earlier this year the group bought another fibre internet provider for $100 million
- The two purchases mean Uniti now operates the second and third largest private fibre networks in the market
- Uniti’s share price is up almost nine per cent today, currently sitting at $1.42 per share
Internet provider Uniti has bought fibre networker OPENetworks for $27.5 million.
Uniti’s CEO and Managing Director, Michael Simmons, said the purchase joins the second a third largest companies in the private fibre networks market.
This is the latest buy in the company’s strategic plan for growth and expansion. Earlier this year, Uniti purchased fibre to home operator LNBCo for $100 million
It is expected by operating the two companies Uniti will increase its position as a fibre network provider and a retail service provider (RSP).
“There are numerous operating efficiencies that the addition of OPEN will deliver, including expanding our national fibre footprint as RSP portfolio,” Michael said.
In Australia’s telecommunications market, OPENetwork was the first company to gain licensing to implement wholesale only and open access network operations.
The two concepts are now standard practice for superfast broadband access networks, as directed by the Australian Government.
“OPEN’s sizeable contracted ports pipeline provides UWL with a known source of expanding wholesale revenues over the coming years, delivering an increasing, long-term annuity earnings stream, to the benefit of all UWL shareholders,” Michael said.
Currently in OPENetwork’s pipeline is 11,000 premises which are contracted to be connected.
OPENetworks specialises in fibre-to-the-premises services and services to multi-dwelling units.
Shareholders are expected to receive over 10 per cent in earnings per share following the OPENetworks purchase.
Additionally, Uniti’s earnings before interest, tax, depreciation and amortisation are forecast to reach $17.5 million with OPENetworks added to its portfolio.
At market close Uniti’s share price is up 8.8 per cent today, currently sitting at $1.42 apiece.
