Aussie Broadband Expands Footprint with AGL Telco Acquisition, Eyes Top-Tier NBN Position

Key Highlights

• Aussie Broadband to acquire AGL Energy’s telecommunications business, adding about 350,000 broadband and mobile connections
• Long-term exclusive partnership signed with AGL to jointly grow bundled energy-telco offerings
• Transaction expected to generate about $235 million revenue and $21 million EBITDA in the first year after migration
• Company aims to become Australia’s third-largest NBN provider with over 1.25 million broadband connections
• CEO Brian Maher calls the deal a “strategically significant transaction” that strengthens long-term growth
  
   

Aussie Broadband targets next growth phase through AGL Telco acquisition

Aussie Broadband Ltd (ASX: ABB) has taken a major step toward scaling its telecommunications footprint, announcing the acquisition of AGL Energy’s telecommunications business alongside a long-term exclusive strategic partnership with the energy giant. The move is expected to significantly expand the company’s customer base, strengthen its network economics, and position it among the largest NBN providers in Australia.

Shares of Aussie Broadband surged following the announcement, reflecting market optimism that the deal will accelerate earnings growth and reinforce the company’s competitive standing in the increasingly consolidated telecommunications sector.

Source: StocknessMonster

At the time of writing this article, ABB shares were up by 11.9%, trading at A $5.07

A scale-building acquisition

Under the agreement, Aussie Broadband will acquire AGL Telco’s customer assets, which include approximately 218,000 NBN services, 144,000 mobile connections, and 46,000 voice services as of December 2025. Once the migration process is completed, the combined transaction is expected to add around 350,000 broadband and mobile connections to Aussie Broadband’s network. 

The acquisition is expected to complete in June 2026, with customer migration planned for completion during the first half of FY27. From a strategic standpoint, the deal is designed to accelerate Aussie Broadband’s long-term ambition of building scale while improving operating leverage across its infrastructure.

Strategic partnership extends beyond acquisition

Beyond the asset purchase, the companies have entered into a long-term exclusive partnership that allows AGL to continue marketing telecommunications services under the AGL brand, while Aussie Broadband will operate the network, deliver services, and manage customer experience. 

This arrangement effectively combines AGL’s strong brand presence and retail customer reach with Aussie Broadband’s infrastructure and service capabilities. The model is expected to unlock cross-selling opportunities, particularly through bundled energy and telecommunications offerings, a segment that continues to grow as consumers increasingly prefer integrated service packages.

Financial impact and earnings outlook

Aussie Broadband expects the acquisition to generate approximately $235 million in revenue and about $21 million in underlying EBITDA during the first 12 months following migration, excluding one-off integration costs. 

The upfront consideration for the transaction totals $115 million, to be paid in shares, with approximately 22 million shares expected to be issued to AGL upon completion. Additional performance-linked shares worth up to $10 million may be issued subject to customer growth milestones.

Importantly, management expects the transaction to be earnings-per-share accretive in the first year after migration, suggesting immediate financial benefits rather than a long-term payback profile often associated with telecommunications consolidation.

Becoming one of Australia’s largest NBN providers

The deal has strong strategic implications for Aussie Broadband’s market position. Following the migration of AGL Telco customers, along with the previously announced migration of the More and Tangerine services, the company expects broadband connections to exceed 1.25 million and mobile connections to approach 400,000, potentially making it the third-largest NBN service provider in Australia. 

Scale is particularly important in telecommunications because larger networks allow operators to spread infrastructure costs across a wider customer base, improving margins and competitiveness. As the Australian telco landscape continues consolidating, scale-driven efficiencies are becoming a key differentiator among providers.

Management commentary: Confidence in long-term growth

Aussie Broadband Group CEO Brian Maher described the transaction as a transformational milestone for the company, emphasizing both the strategic and financial advantages.

He said, “We are delighted to have secured this strategically significant transaction with AGL which will see Aussie Broadband further cement its position as a leading provider of fast and reliable NBN services in Australia. To be chosen by one of the largest and most trusted energy providers in Australia as their partner in connectivity is a further testament to the outstanding quality and reliability of our network and the service we provide to our partners and customers.”

Maher added that the deal would provide “a significant boost to our connections and EBITDA from 2H FY27,” highlighting the company’s expectation of meaningful earnings expansion as the migration is completed. 

AGL Managing Director and CEO Damien Nicks also noted the complementary nature of the partnership, stating that AGL had been “immensely impressed with Aussie Broadband’s strong focus on reliability and quality of the network” and expects the collaboration to enhance customer experience across bundled offerings. 

Source: Aussie Broadband ASX Announcement (11 February 2026)

Industry context: Consolidation and bundled services trend

The telecommunications industry in Australia is undergoing a structural shift toward bundled service ecosystems, where energy, connectivity, and digital services are increasingly packaged together. Retailers with strong customer relationships are seeking partnerships with infrastructure-focused telecom providers to deliver bundled offerings without building networks from scratch.

For Aussie Broadband, the acquisition and partnership model represents an efficient pathway to growth, allowing the company to rapidly increase scale while leveraging AGL’s retail distribution reach.

The transaction also aligns with the company’s long-term strategy of expanding through selective acquisitions that enhance customer density and improve network utilization. As operating costs in telecommunications remain largely fixed, higher subscriber numbers can translate directly into margin expansion over time.

Market reaction and outlook

Investors responded positively to the announcement, pushing Aussie Broadband shares sharply higher during the trading session as markets priced in the expected earnings uplift and long-term scale benefits.

Looking ahead, the company expects FY27 to mark a period of strong expansion, driven by both the AGL Telco migration and previously announced network integration programs. If executed successfully, the deal could meaningfully strengthen Aussie Broadband’s position in the mid-tier telecommunications segment and improve its competitiveness against larger incumbents.