Australia's PE-backed LBNCo acquired by strategic player

LBNCo’s fiber to the premises (FTTP) network focuses on residential properties, and includes more than 65,000 homes across both multi-dwelling units and single family residences, making it Australia’s fifth-largest data provider. A further 22,000 homes are contracted to be connected to the network over the next two years across Australia.

ROC acquired LBNCo last year for an undisclosed amount as part of a management buyout. Additional investors included Attalis Capital, First State Super, and several family offices and high net worth individuals. LBNCo reported A$17.4 million in revenue for the 2019 financial year, up from A$15.3 million the year before; over the same period, EBITDA grew from A$6.4 million to A$8.2 million.

Uniti aims to provide fast, reliable online communications services for Australian homes and businesses. The company had a network of 113 cellular towers at the time of its IPO earlier this year, which has since grown to more than 200 with the acquisition of FuzeNet, a subsidiary of LBNCo. Purchasing LBNCo will give the company a ready-built fiber-optic network, which Uniti sees as one of its three pillars for future growth. The other two are wireless internet and specialist products for corporate customers.

The acquisition will be financed through the issue of 83.4 million shares at A$1.20 each to institutional and sophisticated investors. Uniti will also issue A$10 million worth of shares, at the same price, to select LBNCo shareholders.

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• Topics
• Australasia
• Infrastructure
• Technology
• Trade sale
• Australia
• TMT
• ROC Partners
• Exit