Acquisition
Superloop Acquires Lynham Networks for $165M
•February 18, 2026
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Why It Matters
The transaction gives Superloop scale in wholesale fibre and smart‑community assets, sharpening its competitive edge against Australia’s entrenched telcos and supporting long‑term earnings growth.
Key Takeaways
- •Superloop buys Lynham Networks for $165 million cash.
- •Adds 54,000 FTTP lots, total 170,000 smart community lots.
- •H1 FY26 revenue up 23% to $317.6 million.
- •Net profit flips to $5.1 million after prior loss.
- •Acquisition positions Superloop as serious incumbent challenger.
Pulse Analysis
Australia’s broadband landscape is undergoing rapid consolidation, and Superloop’s purchase of Lynham Networks marks a decisive step toward building a national smart‑communities platform. By integrating Lightning Broadband’s open‑access FTTP network, Superloop now controls a contiguous fibre backbone that reaches 170,000 multi‑dwelling and single‑dwelling units. This geographic breadth, spanning from Victoria to Western Australia, not only enhances network resilience but also creates cross‑sell opportunities for its existing broadband, build‑to‑rent, and student accommodation services.
The financial backdrop underscores the strategic timing of the deal. Superloop reported a 23.3% revenue surge to $317.6 million in the first half of FY26, driven by robust consumer and wholesale growth. Underlying EBITDA jumped 46%, reflecting operating leverage from digital and AI‑driven cost controls. Most notably, the company swung back to profitability, posting a $5.1 million net profit after a $7.8 million loss the prior year. This earnings rebound provides the cash flow cushion—$53.5 million in gross operating cash—to fund further acquisitions and expand its high‑margin smart‑communities segment.
Looking ahead, the expanded fibre footprint positions Superloop to challenge the NBN‑centric incumbents on both price and service quality. The combined asset base offers clear visibility of long‑term demand, especially as Australian landlords and developers increasingly prioritize fibre‑ready properties. With a 7% NBN market share and a pipeline of 85,500 future lots, Superloop can leverage economies of scale to negotiate better wholesale rates and attract new enterprise customers. Investors are likely to view the acquisition as a catalyst for sustained earnings growth and a hedge against the competitive pressures of the broader telecom sector.
Deal Summary
Australian ISP Superloop announced it will acquire Lynham Networks, the parent of Lightning Broadband, for $165 million in cash. The acquisition adds roughly 54,000 FTTP lots to Superloop’s smart‑communities portfolio, expanding its wholesale fibre network across multiple states. The deal is expected to close in the fourth quarter of FY26.
Article
Source: ARN (Australia)
Superloop is set to expand its footprint with the acquisition of Lynham Networks, the parent company of Lightning Broadband, for $165 million in cash.
This comes amid posting a relatively profitable first half of the 2026 financial year.
Founded in 2015, Lightning operates an open-access wholesale networks across more than 400 multi-dwelling units and single-dwelling unit develops as a default last mile fibre provider.
The deal sees Superloop pick up Lightning’s wholesale fibre-to-the-premises (FTTP) network, which includes roughly 54,000 lots across Victoria, NSW, the ACT, South Australia, Queensland, and Western Australia.
As a result, the internet service provider’s (ISP) smart communities division will grow to a total contracted footprint of 170,000 lots, consisting of approximately 84,800 constructed lots and around an additional 85,500 future lots.
In a statement released to the Australian Securities Exchange (ASX), Superloop CEO Paul Tyler said the acquisition was a “critical step” in the company’s plans to bolster its smart communities asset base with “significant scale and value”.
He also said the combination of Lightning with its existing smart communities portfolio, which includes its acquisition of Frontier Networks from October last year, creates a “serious challenger to incumbents”.
“With a combined built and contracted book of approximately 170,000 lots, we have clear visibility of long-term sustainable growth,” Tyler said.
“Lightning Broadband’s strength in MDUs complements our expertise in broadacre, build-to-rent and purpose-built student accommodation. Our existing fibre network, including 2,500 kilometres of metropolitan footprint, enables direct connection to Lightning Broadband buildings, driving cost synergies and increasing network resilience.”
The deal is expected to complete in the fourth quarter of FY26 subject to various conditions.
‘Fantastic’ results for the first half of FY26
Superloop’s acquisition of Lynham Networks coincides with the release of its financial results for the first half of F26, which see it bouncing back into the black.
For the six months to 31 December 2025, revenue was up 23.3 per cent compared to the same period a year prior to $317.6 million. The company attributed the growth to strong customer and market share gains in its consumer and wholesale divisions.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were also up, rising 46 per cent due to significant operating leverage with digital and AI investments underpinning operating cost control.
However, more impressive is Superloop’s return to net profitability, with net profit after tax (NPAT) rocketing up to a positive $5.1 million from the previous corresponding period’s net loss after tax of $7.8 million.
In a separate ASX statement, Tyler said the company delivered “fantastic” results for the half year.
“Both the consumer segment and the wholesale segment achieved strong revenue growth, 29 per cent and 28 per cent, respectively,” he said.
“Consumer added a record 49,000 customers during the half, and wholesale experienced accelerated growth in the last two months, setting the business up for a strong second half.
“We continue to invest in digital initiatives to improve customer experience and to drive cost efficiency. In the six months to 31 December, Superloop generated gross operating cash flow of $53.5 million. These funds allow for further investment in growth, including our high-margin smart communities business, driving sustained long-term earnings for the group.”
The ISP’s National Broadband Network (NBN) market share increased during the half year and now sits at 7 per cent, with 127,000 new NBN customers added during the year to 30 September.
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