REG - Bigblu Broadband PLC - Acquisition

Bigblu BroadbandAnnouncement

05/12/2022 07:00

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RNS Number : 4902I  Bigblu Broadband PLC  05 December 2022

Bigblu Broadband plc

("BBB" or the "Company" or the "Group")

Acquires Uniti Satellite Customer base

and consideration of potential ASX listing for SkyMesh

 

 

Bigblu Broadband plc (AIM: BBB.L), a leading provider of alternative superfast
and ultrafast broadband solutions throughout Australasia and the Nordics,
announces that its fully owned Australian business, SkyMesh PTY LTD has
conditionally completed the acquisition of the Satellite operations of Harbour
ISP PTY LTD, a subsidiary of Uniti Group LTD in Australia (the "Acquisition"),
for a total consideration of up to AUD$5.2m (c.£2.9m), to be satisfied from
existing cash resources including our revolving credit facilities with
Santander.  The acquisition is conditional on the appropriate FIRB regulatory
and NBN Co Limited network approvals being obtained in Australia.

 

The satellite operations being acquired currently consist of c.6k customers.
Post completion following the relevant approvals having been obtained, the
customer base will be transferred to SkyMesh who will provide full ongoing
support services from its Australian Customer Engagement Centre. Pursuant to
the terms of the acquisition agreement, Uniti will continue to provide
services for up to three months post completion to ensure a smooth transition
of the customer base. The transfer of the customer base is expected to be
immediately earnings enhancing.

 

Following completion, the Directors anticipate that the acquired operations
are expected to generate annualised revenues of c.£2.5m and EBITDA of
c.£0.7m with positive cash generation, enabling the Group to continue to
reinvest and grow the business in the Australian market. Pro forma previous 12
months revenue and underlying adjusted EBITDA for the operations being
acquired were £2.4m and £0.6m respectively.

 

The Directors believe that the profitability of operations being acquired
should improve under Bigblu Broadband's ownership due to the Group's better
operational gearing and economies of scale and SkyMesh's dedicated focus on
customers in this sector. The Board will continue to focus on creating
significant shareholder value through the rapid scaling of its Australasian
Operations. In addition, the Board also continues to explore all options to
realise value for BBB shareholders from SkyMesh, which could include a
potential ASX listing of SkyMesh.

The trading update for the year ended 30 November 2022 will be issued on
12(th) December 2022.

 

Andrew Walwyn, CEO of BBB plc, said: "SkyMesh, our Australian business, is an
excellent operation and we are delighted to work with Uniti on this
transaction as we seek to rapidly scale our Australasian operations in order
to increase options for creating Shareholder Value within the Group."

 

Michael Simmons, CEO of Uniti Group said: "After a period of discussion we
are delighted to have concluded a transaction for our satellite customers to
the ambitious market leading Australian business, SkyMesh. We will continue to
provide support services during the transition period and know these customers
will be well looked after."

 

 

 

 

 

For further information:

 

 Bigblu Broadband Group PLC                                      www.bbb-plc.com (http://www.bbb-plc.com)
 Andrew Walwyn, Chief Executive Officer                           Tel: +44 (0)20 7220 0500

 Frank Waters, Chief Financial Officer

 finnCap (Nomad and Broker)                                      Tel: +44 (0)20 7220 0500

 Marc Milmo / Simon Hicks / Charlie Beeson (Corporate Finance)

 Tim Redfern / Harriet Ward (ECM)

 

About Bigblu Broadband plc

 

Bigblu Broadband plc (AIM: BBB.L), is a leading provider of alternative
superfast and ultrafast broadband solutions throughout Australasia and the
Nordics. BBB delivers a portfolio of superfast and ultrafast wireless
broadband products for consumers and businesses unserved or underserved by
fibre.

 

High levels of recurring revenue, increasing economies of scale and Government
stimulation of the alternative broadband market in many countries provide a
solid foundation for significant organic growth as demand for alternative
ultrafast broadband services increases around the world.

 

BBB's range of solutions includes satellite, next generation fixed wireless
and 4G/5G FWA delivering between 30 Mbps and 150 Mbps for consumers, and up to
1 Gbps for businesses. BBB provides customers a full range of services
including hardware supply, installation, pre-and post-sale support, billings
and collections, whilst offering appropriate tariffs depending on each end
user's requirements.

 

Importantly, as its core technologies evolve, and more affordable capacity is
made available, BBB continues to offer ever-increasing speeds and higher data
throughputs to satisfy market demands for broadband and broadband services.
BBB's alternative broadband offerings present a customer experience that is
similar to that offered by wired broadband and the connection can be shared in
the normal way with PCs, tablets and smart phones via a normal wired or
wireless route.

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