Aussie Broadband has officially wrapped up its acquisition of AGL Telco, which is set to add about 350,000 NBN services by the second quarter of FY27. The extra scale strengthens its position in the Australian broadband market and feeds directly into the company’s longer term earnings plans.
Management is tying the transaction to its multi year strategy rather than treating it as a one off bolt on deal.
Under the terms of the transaction, AGL receives $115 million in Aussie Broadband shares as consideration rather than cash. Those shares equate to roughly 22 million fully paid ordinary shares or around 7% of Aussie Broadband’s issued capital.
The acquired telco unit is expected to contribute about $21 million in underlying EBITDA in the first 12 months after customer migration is complete. Aussie Broadband maintains its underlying EBITDA guidance for FY26 at between $162 million and $167 million and now expects capital expenditure to land toward the top of its $55 million to $60 million target range.
The deal mechanics are designed to align AGL with Aussie Broadband’s future performance, given the equity based payment structure. Additional NBN services from the AGL Telco base should help drive operating leverage as more customers are served over largely fixed network and systems costs.
Forecast EBITDA from the acquired business provides a clear contribution line, which investors can map against the reaffirmed group guidance. Higher capex at the upper end of the planned range reflects ongoing investment in infrastructure and integration to support the enlarged customer footprint.
