Aussie Broadband buys Nexgen to boost SME communications push

Spirit Technology Solutions Ltd. ( (AU:ITS) ) just unveiled an update.

Aussie Broadband has agreed to acquire 100% of Nexgen Investment Group for an upfront cash consideration of $44.1 million, plus an earn-out of up to $5.9 million tied to future EBITDA targets. Nexgen will continue to operate as a standalone entity, while its existing base of about 6,000 SME NBN customers on multi-year contracts and its Agentic AI product set will extend Aussie Broadband’s SME reach and product portfolio.

The deal is expected to be earnings-per-share accretive, with Nexgen forecast to contribute $2.7 million to Aussie Broadband’s EBITDA in FY26 and generate annual cost synergies of $2 million to $4 million within two years. Management describes the acquisition as a strategic fit that combines Aussie Broadband’s network strengths with Nexgen’s unified communications capabilities, reinforcing the group’s position in the SME market and supporting margin expansion and sustainable growth, funded through existing cash and undrawn debt facilities.

The most recent analyst rating on (AU:ITS) stock is a Hold with a A$0.45 price target. To see the full list of analyst forecasts on Spirit Technology Solutions Ltd. stock, see the AU:ITS Stock Forecast page.

More about Spirit Technology Solutions Ltd.

Aussie Broadband Limited is an Australian telecommunications provider focused on broadband and mobile services, with a growing emphasis on serving small and medium-sized enterprises nationwide. Nexgen, founded in 2009, is a business technology solutions firm specialising in advanced telephony, unified communications and office technology, working with partners such as Cisco to serve modern small-business communication needs.

Average Trading Volume: 32,098

Technical Sentiment Signal: Strong Sell

Current Market Cap: A$78.92M

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