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SUPERLOOP (ASX: SLC) has entered into a binding agreement to acquire APEX Networks (APEXN), effective next week.
APEXN provides networking solutions and managed services with a focus on supporting wholesale and channel partners and has been operating in Australia since 2006.
Total consideration is sitting at $5.8 million, consisting of $3.8 million in cash and $2 million in Superloop scrip, with the cash component is to be funded from existing cash reserves.
Superloop CEO Daniel Abrahams (pictured) says the gain of APEXN allows Superloop to rapidly deploy a managed services capability for their wholesale and channel customers through APEXN's IT and product platforms.
"APEXN's platform includes key systems from service qualification tools through to ordering, provisioning, billing, support and network management. This is particularly important as Superloop expands our fibre network in Singapore under Project Red Lion," Abraham says.
APEXN will still operate in Australia as a Superloop group brand and is currently EBITDA and cash flow positive with this financial year's reputable customer and frequent proceeds expected to be in excess of $3 million.
Co-founders of the networking business Ryan Crouch and Matthew Gregg will continue within Superloop, with Gregg assuming the role of general manager and Ryan Crouch assuming the role of chief technology officer.
Both Crouch and Gregg say they are committed to the ongoing implementation and development of APEXN's services within Superloop, and look forward to contributing to the ongoing success of Superloop.
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