Tattarang’s investment in Cirrus Communications (now renamed Swoop Telecommunications)
Acted as financial advisor to Cirrus Communications on its growth capital raising.
$12 million | October 2019
Company Overview
Cirrus Communications (Cirrus) is one of seven national infrastructure-based telecommunication companies with its wholly-owned network comprising 160 transmission sites servicing circa 1,400 customers.
Founded in 2005, Cirrus uses fixed wireless technology to enable it to sell internet connectivity to business-grade customers, predominantly in non-CBD metropolitan areas, which have traditionally been serviced by the major carriers such as Telstra and NBN Co.
In the markets that Cirrus operates, Cirrus is the lowest cost operator with a best in class, highly profitable network offering significantly shorter installation times to customers.
Background
VCF Capital was engaged as exclusive financial advisor to Cirrus to raise capital to enable the Company to pursue a growth strategy aimed at exploiting and investing in its national network and service delivery as well as expanding the Company’s direct sales channel and growth the customer base to 5,000 over 3 years.
Transaction Summary
In September 2019, a consortium of investors led by Tattarang (Andrew Forrest), James Spenceley, Tony Grist and Matt Hollis (ex-Vocus Communications) committed $12.5m to Cirrus to facilitate Cirrus’s growth objectives, with $7.0m invested at completion.
As part of the transaction and growth strategy, Cirrus appointed former Superloop and Vocus Communications executive, Alex West as the CEO to enable the previous CEO and co-founder, Eric Heyde, to focus on the technical side of the business as CTO.
Outcome
VCF Capital managed a process that saw significant interest received from domestic private equity funds, family offices and superannuation funds arising from VCF Capital’s network and translated into a high profile consortium of investors and telecommunications executives investing in the Company.
The transaction provided Cirrus sufficient capital to pursue its organic and inorganic growth strategy which subsequently led to the acquisition of Anycast networks and DCSI in May 2020 and NodeOne by way of a reverse listing in June 2021 under the name of Swoop Holdings, in which the company raised a further $20 million in gross proceeds.