Aussie Broadband to acquire Nexgen in SME growth push

Aussie Broadband Ltd. ( (AU:ABB) ) has shared an announcement.

Aussie Broadband has agreed to acquire 100% of Nexgen Investment Group for an upfront cash payment of $44.1 million plus up to $5.9 million in earn-outs, funding the deal from cash and existing undrawn debt facilities. Nexgen will remain a largely standalone entity, with its co-founders staying on, and the acquisition is expected to be EPS accretive, add around 6,000 long-term SME NBN customers, deliver annual cost synergies of $2 million to $4 million within two years and enhance Aussie Broadband’s SME growth platform and national reach through complementary unified communications and Agentic AI product offerings.

Nexgen is forecast to generate FY26 EBITDA of $8.1 million and contributed $7.7 million of underlying EBITDA in FY25, implying an acquisition multiple of 6.2 times FY26 EBITDA, or 4.1 times with full synergy realisation. Aussie Broadband sees the transaction as a strategic fit that combines its broadband and mobile strengths with Nexgen’s office technology and customer service capabilities, positioning the group for sales uplift, margin expansion and a stronger competitive position in the significant SME communications market, subject to customary completion conditions expected to be satisfied by the end of March 2026.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$6.15 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

More about Aussie Broadband Ltd.

Aussie Broadband Limited is an Australian telecommunications provider focused on broadband and mobile services, with a growing emphasis on the small and medium-sized enterprise market. Nexgen, founded in 2009, is a business technology and unified communications provider that partners with major vendors such as Cisco to deliver advanced telephony, data, hardware and office technology solutions to SMEs nationwide.

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Technical Sentiment Signal: Buy

Current Market Cap: A$1.51B

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