Swoop to seek $41m for acquisitions

NSW-based challenger telco Swoop is headed back to investors as it seeks to continue its recent spate of acquisitions since listing on the ASX in May.

Swoop, which is backed by Minderoo Foundation’s Andrew Forrest and Tony Grist, has acquired several regional players in recent months, including Perth-based ComComs, and had itself merged with NodeOne Internet prior to listing.

That acquisition spree is set to continue, with the company announcing today it will seek $41 million to fund further purchases and partially pay for Countrytell, which it acquired earlier this month.

Approximately 22 million shares will be issued at $1.85 each, with Morgans Corporate managing and underwriting the placement with Maddocks acting as lead adviser.

“Following a strong year and a successful listing on the ASX in May, this is an exciting milestone that will enable us to grow the company and service more customers, particularly those in regional areas across Australia,” Alex West, chief executive of Swoop, said.

“We believe it will allow us to improve connectivity and services to continue delivering outstanding results for our customers and our shareholders.”

Elsewhere, Swoop has upgraded its guidance for the current financial year to revenue of between $43 million and $45 million, with earnings of between $10.5 million and $11 million.

Future acquisitions, of which the company has already targeted with either exclusivity arrangements or sales discussions, will increase both those figures.

Swoop closed trading yesterday at $2.09.