Superloop to acquire Exetel

non-core promise on 07/06/2021 - 22:45
Last edited 08/06/2021 - 20:57

https://www.afr.com/street-talk/superloop-dials-into-interne…

Bevan Slattery-chaired telco infrastructure play Superloop is set to acquire privately-owned internet service provider Exetel.
…
The acquisition would more than quadruple Superloop’s home broadband subscriptions.

https://itnews.com.au/565623

Superloop is set to acquire retail service provider Exetel for $110 million in cash and shares, marking further consolidation in the Australian broadband market.

The purchase will bring 110,000 consumer and business customers onto Superloop’s books.
…
Superloop said its offer comprised of $100 million cash - to be raised - and $10 million in shares.

https://arnnet.com.au/article/688946

Once the [sic] completes, Exetel will become part of Superloop, thereby becoming part of the publicly-traded company.

Both brands will remain in place, with Exetel customers continuing to be supported by its own team.

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Comments

  • bazingaa on 07/06/2021 - 23:07

    would more than quadruple

    what is the meaning of this ? current Exetel subscriptions = 3 * current Superloop subscriptions ?

    • Mechz on 07/06/2021 - 23:38

      Yes.

      • follow on 08/06/2021 - 02:26

        exetel claim 100,000 customer 🤔

    • valleyrain on 08/06/2021 - 09:12

      Nope, quadruple is four. Current Exetel subscriptions >= 4 * current Superloop subscriptions.

      • Chandler on 08/06/2021 - 10:31

        No.

        The acquisition would more than quadruple Superloop’s home broadband subscriptions.

        Superloop (pre-Exetel) subscribers = X
        Superloop (post-Exetel) subscribers > X * 4

        Change in subscribers > (X * 4) - (X)
        Change in subscribers > X * 3
        Change in subscribers = Exetel subscribers

        So Exetel has more than 3 times the number of subscribers as Superloop.

        This could in fact be 4 times. Could be 5 times. But in actuality is probably just a little more than 3, since those sorts of numbers are usually specified in the most favourable light.

        • vinni9284 on 08/06/2021 - 12:14

          IMO there are always migration issues when companies merge. I'm sure that there will be unhappy customers due to latency or gremlins with the merge. Therefore
          - Change in subscribers > (X * 3) ~ x 85%
          I am currently with Superloop and they are another cheap telco with their cheap plans and service so therefore I can deduce that the new formulae:
          - Change in subscribers > ((X * 3) - 1) ~ x 85% :P

          • bazingaa on 08/06/2021 - 12:49

            @vinni9284: I thought Exetel is smaller than Superloop

            • vinni9284 on 08/06/2021 - 12:51
              +1

              @bazingaa: Regardless, many mergers have migration issues which generates unhappy customers which tend to churn to another. It's becoming the 'utilities & banking' churning loops as they are now easy to switch than ever.

              Edit: I am currently with Superloop and waited over an hour for customer support. Throughout my call, there was an option to leave your contact details, as you will not lose your queue; I opted for that… did they call back? … have a guess? .. now migrating a merger with similar amount of customer support staff .. I think covid disruption excuses are very overused these days to justify delays etc.. as they don't want to spend

          • Chandler on 08/06/2021 - 12:58

            @vinni9284: Of course. My comment was more correcting the math.

            Quadrupling something means the result is 4 times greater than the original value. That means an increase of 3 times the original value.

            • vinni9284 on 08/06/2021 - 13:01

              @Chandler: Yep and then subtract 15% of customers leaving due to migration issues

              • Chandler on 08/06/2021 - 13:03

                @vinni9284: Of course. Changes like that are a common motivation for customers to shop around.

  • Salvationk on 10/06/2021 - 11:28

    I just left superloop last month when my 6 month promotion price expired and churn to exetel…

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