MELBOURNE: Aussie Broadband Ltd. said Wednesday it will acquire AGL Energy Ltd.’s telecommunications business in a $115 million share‑based deal that will make AGL a substantial shareholder and expand Aussie Broadband’s market position.
The agreement, announced Feb. 11, will add about 350,000 broadband and mobile connections to Aussie Broadband’s customer base. The company expects the transaction to deliver roughly $235 million in revenue and $21 million in underlying EBITDA in the first year after migration, scheduled for fiscal 2027.
Aussie Broadband will issue about 22 million shares to AGL in June, representing 7.5% of its current capital. Additional shares worth up to $10 million may be issued if growth targets are met. The deal is expected to be earnings‑per‑share accretive in the first year following migration.
Once AGL Telco and More/Tangerine services are fully integrated, Aussie Broadband projects it will become Australia’s third‑largest NBN provider, with more than 1.25 million broadband connections and nearly 400,000 mobile connections.
“This transaction provides a significant boost to our connections and EBITDA from 2H FY27,” Aussie Broadband CEO Brian Maher said. AGL CEO Damien Nicks added that the partnership strengthens AGL’s bundled energy and telecommunications offerings.