Australian fiber optic networking provider Superloop is buying Brisbane-based APEXnetworks for AU$5.8 million.

The company specializes in networking solutions and managed services, with a focus on supporting wholesale and channel partners.

Following the acquisition, APEXnetworks will continue to operate in Australia as a brand within the Superloop group, with revenues in excess of AU$3 million expected this financial year.

Business to business

APEXnetworks (not to be confused with Apex Networks headquartered in the UK) was founded in 2006 to offer business broadband and connectivity services to Tier 1 and Tier 2 communications providers. The company maintains 11 points of presence across Australia’s largest cities, and its core assets include a proprietary software-defined network management system.

Under the terms of the deal, Superloop will pay AU$5.8 million for APEXnetworks, consisting of AU$3.8 million in cash from existing reserves and AU$2 million in Superloop scrip.

APEXnetworks co-founders Ryan Crouch and Matthew Gregg will both continue working within the Superloop group. Crouch will assume the role of CTO at Superloop, while Gregg will be appointed the general manager of APEXnetworks.

“The acquisition of APEXN allows Superloop to rapidly deploy a managed services capability for our wholesale and channel customers via APEXN’s IT and product platforms,” said Daniel Abrahams, CEO of Superloop.

“APEXN’s platform includes key systems from service qualification tools through to ordering, provisioning, billing, support and network management. This is particularly important as Superloop expands our fibre network in Singapore under Project Red Lion.”

Project Red Lion is an initiative announced by Superloop in the beginning of September. It will extend the company’s dark fiber network into 25 commercial buildings in Singapore at the cost of AUD$2M, as it begins to grow its presence in key Asian markets. Superloop has also recently secured a telecommunications license in Hong Kong.

The acquisition of APEXnetworks is expected to complete on 16 October 2015.