Market Herald logo


Be the first with the news that moves the market
  • 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.

UWL by the numbers
More From The Market Herald
Swoop (ASX:SWP) - Non Executive Chairman, James Spenceley

" Swoop (ASX:SWP) to acquire VoiceHub for $6m

Network services provider Swoop (SWP) is set to acquire Sydney-based wholesale voice service provider VoiceHub for $6 million.
Aussie Broadband (ASX:ABB) - Managing Director, Phillip Britt

" Aussie Broadband (ASX:ABB) confirms takeover talks with Over The Wire (ASX:OTW)

In response to an article by The Australian, Aussie Broadband (ABB) has confirmed it is in discussions with Over The Wire (OTW) regarding
Spirit Technology Solutions (ASX:ST1) - Managing Director, Sol Lukatsky

" Spirit Technology Solutions (ASX:ST1) reports slow start to FY22

Spirit Technology Solutions (ST1) reported a slow start to FY22, bringing in $30.9 million in revenue, compared to $34.2 million during the previous...
Swoop (ASX:SWP) - CEO, Alex West

" Swoop (ASX:SWP) completes $41m placement

Network services provider Swoop (SWP) has successfully completed its oversubscribed $41 million placement.