Broadband provider iiNet has entered into an agreement to acquire rival ISP Netspace for A$40m (US$36m).
The acquisition will, according to iiNet, be “100% debt funded.”
iiNet Chief Executive Officer, Michael Malone, said the acquisition would…
Broadband provider iiNet has entered into an agreement to acquire rival ISP Netspace for A$40m (US$36m).
The acquisition will, according to iiNet, be “100% debt funded.”
iiNet Chief Executive Officer, Michael Malone, said the acquisition would consolidate the company’s position as the leading challenger brand in the Australian telecommunications market.
The deal will lifts iiNet’s market share to 12.4%, and towards its 15% target, with an increase of over 70,000 broadband customers to more than 520,000 broadband customers, and an increase of over 120,000 active services to around 920,000 total active services
Michael Malone, iiNet CEO, said: “Netspace is a natural fit for iiNet given the strong alignment of the company’s products, networks and cultures. It is a great business, having grown strongly in the residential market, and has a loyal customer base given its customer service focus.”
iiNet expects Netspace to generate over A$70m of revenue and A$8m in EBITDA in FY11.
The deal is expected to close by April 30 2010.