Aussie Broadband signed an agreement on 11 February to buy the telecommunications business of AGL Energy for A$115m in its own shares, alongside a long-term exclusive partnership with the energy retailer.
Why Aussie Broadband Limited is buying AGL Energy – telecommunications business (AGL Telco)
Aussie Broadband said the deal would add about 350,000 broadband and mobile connections plus 46,000 voice services, and that after migrating AGL Telco and More/Tangerine customers it expected to become Australia's third-largest NBN provider with more than 1.25m broadband connections. AGL will continue to market telco services under its brand, with Aussie Broadband providing the network and customer service; Aussie Broadband aims to grow the base to more than 500,000 connections within five years.
Deal terms and financing
About 22m Aussie Broadband shares worth A$115m were to be issued to AGL at completion, with up to A$10m of further shares in A$2m tranches subject to growth hurdles, all within the company's 15% placement capacity. The deal is expected to be accretive to earnings per share in the first year after migration. Light Reading reported that AGL would hold about 7.5% of Aussie Broadband.
Regulatory approvals and timing
Completion was expected in June 2026. Aussie Broadband told the ASX on 15 June 2026 that it had completed the acquisition, with AGL issued about A$115m of shares, or roughly 7% of issued capital, and migration of the customers scheduled to finish in the second quarter of its 2027 financial year (Capital Brief).
Market context
AGL entered telecommunications through the 2019 purchase of Southern Phone and launched its own broadband and mobile products in 2020 and 2021, growing to more than 400,000 services by the end of 2025.
