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Aussie Broadband to Acquire AGL Telco Assets in All-Scrip Deal

lite News Desk 2 min read

At a glance

  • Aussie Broadband agreed to acquire AGL Energy’s telco business assets
  • The deal includes about 350,000 broadband and mobile connections
  • AGL to receive A$115 million in shares, plus up to A$10 million more

Aussie Broadband has entered into an agreement to purchase the telecommunications assets of AGL Energy’s telco business, covering broadband, mobile, and voice services.

This acquisition will result in the transfer of approximately 350,000 broadband and mobile connections and 46,000 voice service customers to Aussie Broadband’s network.

The transaction is structured as an all-scrip deal, with AGL set to receive A$115 million in Aussie Broadband shares at closing. An additional allocation of up to A$10 million in shares may be issued to AGL if specific growth targets are achieved.

As part of the arrangement, AGL and Aussie Broadband will establish a long-term exclusive partnership. Under this partnership, AGL will continue to market telecommunications services under its own brand, while Aussie Broadband will provide the underlying network and manage the customer experience.

What the numbers show

  • Approximately 350,000 broadband and mobile connections are included in the acquisition
  • The upfront share consideration totals A$115 million, with up to A$10 million in additional shares possible
  • The deal is projected to generate around A$235 million in revenue and A$21 million in underlying EBITDA in the first full year after migration

The completion of the acquisition is scheduled for June 2026. Customer migration to Aussie Broadband’s systems is planned for the first half of the 2027 financial year.

Following the transaction, Aussie Broadband is set to become the third-largest provider of NBN services in Australia, based on the expanded customer base.

Financial projections for the first full year after customer migration indicate the deal will contribute approximately A$235 million in revenue and A$21 million in underlying EBITDA to Aussie Broadband.

The agreement also establishes a framework for ongoing collaboration between the two companies, with AGL continuing to promote telecommunications offerings while Aussie Broadband oversees service delivery and network operations.

* This article is based on publicly available information at the time of writing.

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