Uniti (ASX:UWL) share price pushes higher after announcing another new acquisition

The Uniti Group Ltd (ASX:UWL) share price is pushing higher on Tuesday after announcing another new acquisition…
The post Uniti (ASX:UWL) share price pushes higher after announcing another new acquisition appeared first on Motley Fool Australia. –

vocus share price

The Uniti Group Ltd (ASX: UWL) share price is pushing higher on Tuesday morning.

At the time of writing, the growing telecom company’s shares are up 2% to $1.61.

Why is the Uniti share price pushing higher?

Investors have been buying the company’s shares after it announced a new acquisition.

According to the release, Uniti has entered into a binding agreement to acquire 100% of the issued capital of specialist broadband Retail Service Provider (RSP), Harbour ISP.

Harbour is a fast-growing RSP, specialising in the delivery of retail broadband services to greenfield housing estates and multi-dwelling unit (MDU) developments.

At present, the ISP has more than 30,000 broadband customers nationwide. Uniti notes it also has a reputation for delivering high quality customer service, evidenced by its strong customer retention levels and sustained growth in customer numbers.

Harbour is a current RSP on the Opticomm Ltd (ASX: OPC) and Uniti owned fibre networks and is a reseller of NBN.

What will this cost Uniti?

The two parties have agreed a purchase consideration of $9.25 million and 1 million Uniti options with an exercise price of $1.54.

Management is forecasting an earnings contribution, including synergies, of $3 million+ in FY 2022, which represents a purchase multiple of ~3x EBITDA.

It feels it is a highly strategic and accretive acquisition, enabling greater penetration and revenue expansion on Uniti-owned fibre networks, including those added via the recent OptiComm acquisition.

Uniti’s CEO and Managing Director, Michael Simmons, commented: “We are delighted to have acquired Harbour ISP. Functional separation now enables us to actively promote retail broadband offerings on our owned networks and Harbour ISP, with its proven pedigree in the greenfield broadband market, is an outstanding platform for us to build specific capability as well as scale in our CBE business unit.”

“With the now confirmed addition of OptiComm to the Uniti Group, our network of private fibre premises (connected, under construction or contracted to be connected) exceeds 400,000 connections. Given this large and growing footprint, the strategic value of acquiring Harbour as a specialist greenfield RSP is significant and timely. We look forward to our CBE business, inclusive of Harbour ISP, continuing to profitably expand as further penetration and growth in average revenue per user on our owned fibre networks is delivered,” he added.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Uniti (ASX:UWL) share price pushes higher after announcing another new acquisition appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!