Andrew Forrest, James Spenceley’s Swoop buys Beam Internet

Rich-lister Andrew Forrest-backed telco Swoop has bought a regional SA business as its ‘springboard for growth’.

Andrew Forrest-backed Swoop is transforming into a tech juggernaut. Picture: Colin Murty/The Australian

ASX-listed telco Swoop, backed by mining billionaire Andrew Forrest and Airtasker chair James Spenceley, has bought a regional SA business in a deal described as a ‘springboard for growth’.

The acquisition of wireless broadband provider Beam Internet for an enterprise value of $7.2m comes within weeks of several other acquisitions by Swoop, including Victorian company Speedweb, and Perth-based Community Communications (ComComs).

Airtasker and Swoop chairman James Spenceley. Picture: Julian Andrews

Swoop is chaired by Mr Spenceley, a tech entrepreneur and investor, who led the business to its ASX listing in May this year.

Wan Solutions, which trades as Beam Internet, is the largest privately owned fixed wireless network in regional SA and offers high-speed wireless broadband on its own network of over 60 towers and masts and has more than 3,600 on-net residential and SME services in operation. In SA, Beam’s network covers the Fleurieu Peninsula, Barossa, Kangaroo Island, Mid North, Murray Bridge and South East regions in South Australia, and also parts of the West Victoria and Mallee regions in regional Victoria.

Beam’s current financial year earnings before interest and taxes are forecast to be at least $1.6m.

“Acquiring Beam is another fantastic opportunity for Swoop to expand our infrastructure coverage into regions we do not have infrastructure,” Swoop chief executive Alex West said.

“Beam has a recently upgraded and well-built modern network which aligns with our own national network and gives us a strong springboard for growth into the SA market.

“We look forward to the opportunities this acquisition provides in establishing a South Australian presence for the Swoop brand.”

The transaction on a “cash free debt free basis” includes $6m in cash and $700,000 worth of Swoop shares.

Under the agreement, $1.3m of the cash consideration will be held back for 12 months for any potential claims or adjustments.

Swoop, valued at $104m, operates under four brands: Swoop Wholesale, Swoop Business, Swoop Broadband and NodeOne.

Shareholders in Swoop include Andrew Forrest’s Tattarang, Mr Spenceley and fellow tech entrepreneur Tony Grist, who is also a director in Mr Forrest’s Minderoo Foundation.

Mr Spenceley has previously described his hands-on involvement in Swoop as “coming home”.

Mr Forrest, who is ranked second among Australia’s richest 250 with his $29b fortune, entered the telco space with an investment in Swoop (formerly Cirrus) in late 2019.