Superloop Limited has entered into a sale and purchase agreement to acquire wholesale Fiber-to-the-Premises (FTTP) and student accommodation broadband provider VostroNet Holdings Pty Ltd for AU$35 million ($22.5m).

The deal is comprised of AU$24.5m ($15.7m) in cash and AU$10.5m ($6.7m) in Superloop shares, with the acquisition expanding Superloop's WiFi market position.

Superloop, which was founded in 2014, is an independent provider of connectivity services that operate across Australia, Singapore, and Hong Kong.

The company sees the acquisition as a way of boosting its market share by supplying broadband to the tertiary student accommodation sector. The acquisition of VostroNet means that Superloop now provides broadband coverage to approximately 40,000 students.

Some of Brisbane-based VostroNet's key customers include UniLodge, Iglu Student Accommodation, Queensland University of Technology and Sunshine Coast Council for WiFi solutions, and Billbergia, CBUS, and Consolidated Properties for smart FTTP network infrastructure.

VostroNet specializes in delivering high-speed FTTP and intelligent WiFi networks for multi-dwelling (MDU) and broadacre developments serviced with VostroNet fiber networks.

Superloop says the takeover highlights the firm's ambitions of 'developing its OnNet Smart Communities division via the addition of FTTP capabilities, an installed base and pipeline to address adjacent markets such as new developments, build to rent, broadacre and MDU markets and associated infrastructure builds'.

The acquisition will be paid for out of Superloop's existing cash reserves, the company confirmed.

"We are extremely pleased with this transaction as in addition to strengthening our position in the provision of on-net broadband services to the student accommodation market, it also adds capability in the growing build-to-rent and MDU markets," said Superloop managing director and CEO Paul Tyler.