ABB acquires AGL Telco assets & enters strategic partnership
| Stock | Aussie Broadband Ltd (ABB.ASX) |
|---|---|
| Release Time | 11 Feb 2026, 8:32 a.m. |
| Price Sensitive | Yes |
Aussie Broadband acquires AGL Telco assets, enters strategic partnership
- Aussie Broadband to acquire AGL Telco, adding ~350,000 broadband and mobile connections
- Long-term exclusive partnership between Aussie Broadband and AGL to drive continued growth
- Transaction expected to be EPS accretive in the first year following migration completion
Aussie Broadband Group (ASX:ABB) has signed an agreement to acquire the telecommunications business of AGL Energy Limited (ASX:AGL), including its customer assets. The acquisition will add an estimated combined 350,000 broadband services and mobile connections to Aussie Broadband's customer base together with 46,000 voice services. The acquisition is expected to complete in June 2026, with the migration expected to be complete in H1 FY27. Importantly, an agreement has also been signed to establish a long-term exclusive partnership between the two companies to drive continued growth, leveraging Aussie Broadband's network infrastructure and customer service expertise, and AGL's strong brand equity, existing large customer base and energy bundled offers. The agreement is expected to deliver estimated Revenue of approximately $235 million and underlying EBITDA of approximately $21 million in the 12 months following migration. Aussie Broadband expects to grow AGL Telco connections (excluding voice services) to more than 500,000 over five years. An upfront consideration of $115 million will be paid in ABB shares, with further ABB shares of up to $10 million to be issued subject to meeting specified net growth hurdles. The acquisition is expected to be EPS accretive in the first year following completion of migration.
The agreement is expected to deliver estimated Revenue of approximately $235 million and underlying EBITDA of approximately $21 million in the 12 months following migration. Aussie Broadband expects to grow AGL Telco connections (excluding voice services) to more than 500,000 over five years.
Following the migration of AGL Telco and More/Tangerine services to the Aussie Broadband network, Aussie Broadband is expected to become the third largest NBN service provider, with broadband connections expected to exceed 1.25 million. In addition, Aussie Broadband is expected to service almost 400,000 mobile connections across its segments.