Swoop to buy connectivity provider Countrytell for $4.2mn

Swoop to buy connevticity provider Countrytell Holdings for $4.2mn

MELBOURNE, AUSTRALIA: Swoop Holdings Limited’s wholly owned subsidiary has agreed to acquire Countrytell Holdings Pty Ltd, a regional connectivity provider based in Newcastle, New South Wales for $4.2 million.

The consideration includes $1.47 million in cash at completion; $2.1 million to be satisfied by the issue of fully paid ordinary shares of Swoop; and $0.63 million to be paid 12 months after completion.

The acquisition is subject to customary conditions precedent including obtaining consents to change of control and the Countrytell employees entering into new employment agreements on terms satisfactory to the purchaser.

The consideration shares will be issued from Swoop’s existing placement capacity and will be escrowed for a period of 12 months from completion. The acquisition is expected to complete by 31 October 2021 with an effective date of 1 July 2021.

Countrytell is a telecommunications and data centre provider delivering high-speed internet through a mix of technologies, including fibre and fixed wireless. It has wireless network coverage in and around Newcastle, the Hunter, Mid-coast and Snowy Monaro regions in New South Wales.

It also owns and operates data centre facilities in Newcastle and has a recently constructed fibre network in that city.

Swoop CEO, Alex West stated, “Acquiring Countrytell’s network provides another opportunity for Swoop to further expand the coverage of our infrastructure footprint in regional Australia, as well as providing additional services via its data centre operations.

The company has invested significantly in upgrading its wireless, network infrastructure and transmission capacity; and gives us a strong springboard for continued growth in this market. We look forward to the opportunities this acquisition provides in establishing a Newcastle presence for the Swoop brand. I am also excited to be working with this great team again, having previously collaborated when Vocus purchased Ipera from Newcastle entrepreneur Chris Deere, and eagerly welcome the Countrytell customers and staff to Swoop”.

Swoop is a national provider of fixed wireless internet services to wholesale, business and residential customers. The Swoop network is designed and scaled to deliver ultra-reliable, high throughput, flexible telecom network services.

Swoop Holdings Ltd share price

2.16 AUD+0.20 (10.20%)today

6 Oct, 3:57 pm GMT+11 ·Disclaimer


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