This report provides an overview of the recently announced acquisition of BigAir by Superloop to create a wholesale and retail alternative to the NBN across corporate, campus, metro and regional markets in Australia with a merged entity enterprise value of around $500 million.

This transaction marks the continuance of a long trend of consolidation and is likely to become a natural target for the TPG, Vocus, Optus and Telstra following completion of the acquisition or months or years to come.

Key takeaways

Australia’s telecommunications market continues its process of consolidation with more than nine sizeable deals announced in the course of the past 2 years.

BigAir’s acquisition by Superloop is motivated by the complementary business segments offerings and strategic benefits which are planned to assist Superloop with its vision of becoming the leading independent provider of connectivity services across the Asia Pacific.

We anticipate that Australasian telecommunications players will seek increased scale to compete in a world where infrastructure and services on the top of networks become increasingly bifurcated.