Uniti Group officially takes over Opticomm for $532 million

By Nikita Chaurasia  Date: 2020-06-15

Uniti Group officially takes over Opticomm for $532 million

 

  • The Australian based companies have decided to come together to help build a better fiber network infrastructure.
  • Uniti decided to partner with OptiComm due to the company’s ability to meet the future bandwidth needs in order to derive best results for future long-term growth.

It has recently been announced that Uniti Group, a real estate firm based out of Australia has agreed to acquire Opticomm, a network operator for a price of $532 million.

Opticomm is an operator of fiber network and provides services to both residential and business clients. Clients from retirement living, commercial, and community clients are also a part of the company portfolio.

Opticomm has been called as a national firm operating at a large scale by Uniti group that also considers Opticomm as a challenger for the private fiber market. Uniti believes OptiComm has the capability to cope with bandwidth needs in the future with opportunities for expansion in various business and enterprise segments.

Graeme Barclay, the chairman at Uniti group revealed company’s plans to speed up ownership infrastructure in the private fiber market. He said that benefit is expected for shareholders from significant value creation through this deal by merging a growing telecommunications infrastructure with long term pipeline for growth.

Barclay further added to his statement saying that the company is well equipped to significantly expand their fiber network to derive sustainable, long term shareholder value by optimizing efficiencies of merging businesses.

Uniti group has constantly updated their earnings slowly from $35 million to $40 million as per earnings guidance and fiscal year projections FY2020. Michael Simmons, the Managing Director at Uniti Group said that OptiComm complements and fits in well with the existing structure for fiber business at Uniti group. He revealed that OptiComm will be vital for Uniti’s expansion in the consumer based FTTP market and identified the company as an ideal partner for Uniti to grow in adjacent markets like commercial precincts, retirement living, brownfield and enterprise markets.

Simmons also said that OptiComm’s business growth without any prior acquisitions is proof of the company’s ability to achieve required efficiencies and promised confident returns for shareholders after the completion of the acquisition.

Source Credits: https://www.crn.com.au/news/uniti-group-acquires-fibre-network-operator-opticomm-549259

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Netflix confirms producing fictionalized version of Spotify’s ascension

Netflix confirms producing fictionalized version of Spotify’s ascension

By Nikita Chaurasia

Over-the-top content streaming & production giant Netflix Inc. is reportedly working on an untitled series that tells the story of one of the most successful music streaming companies, Spotify Ltd. The six-part series, already listed on Netflix,...

Edtech Byju’s is now India’s highest-valued startup at USD 16.5 billion

Edtech Byju’s is now India’s highest-valued startup at USD 16.5 billion

By Nikita Chaurasia

Byju’s, the largest education technology company, has emerged as India’s highest-valued startup after a USD 340 million funding round involving investors such as UBS Group, Blackstone, and Zoom founder Eric Yuan among others. Recently, B...

LiDAR maker Hesai Photonics secures USD 300 million in Series D funding

LiDAR maker Hesai Photonics secures USD 300 million in Series D funding

By Nikita Chaurasia

Hesai Photonics Technology Co. Ltd., a leading Shanghai-based LiDAR company, has reportedly secured USD 300 million in a Series D funding round which was led by GL Ventures LLC, Xiaomi Corporation, Hillhouse Capital Group, Meituan, and CPE. The roun...

Tesla terminates production of its Model S Plaid + variant indefinitely

Tesla terminates production of its Model S Plaid + variant indefinitely

By Nikita Chaurasia

CEO Elon Musk justified Model S Plaid as good enough against its successor. The Model S Plaid + was touted to be Tesla’s flagship vehicle, with a range of around 519 miles. After unveiling for the first time last year, American EV maker T...

ByHeart concludes largest U.S. clinical trial for infant food product

ByHeart concludes largest U.S. clinical trial for infant food product

By Nikita Chaurasia

ByHeart Inc., a New-York based infant, and baby nutrition company, has recently announced the completion of the largest clinical trial for new infant formula in the past 25 years. With this move, the company is earmarked to be the 4th FDA registered,...