(Alliance News) - Bigblu Broadband PLC on Monday said its wholly owned Australian subsidiary SkyMesh has bought the satellite operations of Uniti Group subsidiary Harbour ISP for AUD5.2 million.
The London-based broadband provider said the acquisition is conditional on regulatory and network approvals from the Australian Foreign Investment Review Board and NBN Co Ltd respectively.
The transaction will be funded from existing cash resources including revolving credit facilities with Santander.
Bigblu said the acquired satellite operations consist of around 6,000 customers and will be transferred to SkyMesh. Uniti will continue to provide services for up to three months post-completion to ensure a smooth transition of the customer base.
Bigblu Broadband expects the acquired operations to generate annual revenue of around GBP2.5 million, alongside earnings before interest, tax, depreciation and amortisation of GB700,000. It said this will enable continued reinvestment to grow the business in the Australian market.
It added profitability should improve due to improved operating gearing and economies of scale under Bigblu Broadband's ownership.
A potential listing of SkyMesh on the Australian Securities Exchange is also being considered by the board to realise value for its shareholders.
Shares in Bigblu Broadband were down 1.2% to 40.50 pence in London on Monday at midday.
By Greg Rosenvinge; gregrosenvinge@alliancenews.com
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Bigblu Broadb. (BBB)