IiNet, the number two ISP in Australia, has acquired TransAct for C$ 60m (US$58.3m).
Canberra based TransAct provides broadband and fixed line telephony, mobile phone solutions and ISP services and has major operations in the Australian Capital…
IiNet, the number two ISP in Australia, has acquired TransAct for C$ 60m (US$58.3m).
Canberra based TransAct provides broadband and fixed line telephony, mobile phone solutions and ISP services and has major operations in the Australian Capital Territory (ACT), and Victoria.
The acquisition will be financed through existing cash and debt facilities.
IiNet said in a statement that TransAct generates annual revenues of around C$ 80m and EBITDA of C$ 17m. The target company has around 40,000 customers across the residential, SME, corporate and government market segments.
IiNet expects the acquisition to be earnings per share accretive, pre-synergies.
Synergies are expected to be achieved through the integration of systems and suppliers, providing further value accretion, the company said.
IiNet’s Chief Executive Officer, Michael Malone, commented: “IiNet’s acquisition of TransACT represents an attractive strategic opportunity to build scale in the ACT market quickly and efficiently. In particular, TransACT’s experienced and passionate management team will allow iiNet to grow its presence in the SME, corporate and government market segments, a key growth area for the Company.”
The transaction is expected to close on 30 November, subject to a number of procedural conditions.
