Speedweb offers wireless broadband from its network of more than 50 towers and masts covering Morwell, Moe, Traralgon, Trafalgar, Churchill, Newborough and Walhalla, bordering the existing Swoop network in the region.
"Acquiring the neighbouring network in West Gippsland is a fantastic opportunity for Swoop, it will neatly increase the coverage of our existing regional infrastructure footprint," said Swoop CEO Alex West.
"We look forward to the opportunities this acquisition provides in terms of expanding our market share in the Gippsland region and we welcome the Speedweb customers to Swoop."
Speedweb has more than 1800 active services.
The acquisition closely follows Swoop's ASX listing, and according to West it is part of a strategy to expand its fixed wireless footprint into new and adjacent regional areas.
The purchase price comprises $1.225 million in cash and $525,000 in Swoop shares, and is being funded from Swoop's cash reserves.
The transaction should be completed by 30 June 2021.