Superloop to acquire Exetel

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.

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.

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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  • would more than quadruple

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

    • Yes.

      • exetel claim 100,000 customer 🤔

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

      • 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.

        • 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

          • @vinni9284: I thought Exetel is smaller than Superloop

            • +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

          • @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.

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

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

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