Sorry Telsta, iiNet Nabs Adam

Written by Oonagh Reidy     05/08/2013 | 16:48 | Category: BROADBAND

iiNet snaps up Adam,after rival was forced to backout

Sorry Telsta, iiNet Nabs Adam

Perth based telco today announce plans to acquire Adam Internet for $60 million cash. 

Rival Telstra, had planned to buy the Adelaide based ISP, but were forced to backdown after the ACCC raised concerns about the impact on competition.  

The acquisition, swells iiNet's customer base to over 900,000 broadband subscribers, adding new Internet subscribers and "key South Australian business and government clients," iiNet said in a statement.   

Based in Adelaide, Adam Internet has 70,000 broadband subscribers mainly in South Australia and Northern Territory.  

iiNet also cited the "opportunity" to increase the bundle offers to Adam Internet customers, meaning bigger market for treble play iiNet, broadband and phone offering. 

The acquisition also includes 'associated companies. 

The ACCC has already cleared the transaction. 

The $60m deal also gives iiNet a new data centre and additional DSLAM and fibre network infrastructure. 

Adam Internet prospects also looks bright, expected FY14 revenue of $55 million and earnings (EBITDA) of $11.5 million, with synergies expected from FY15 onwards. 

It also has comfortable net debt profile and headroom within existing bank facility post-acquisition.

Completion of the acquisition is subject to a number of conditions, expected to be met by 31 August 2013.

Breaking News

  • $120,000 Samsung Ultra HD 105

    $120,000 Samsung Ultra HD 105" TV Goes On Sale
    24 hours after arch rival LG announced the World's First Curved ULTRA HD 4K OLED TV Samsung has put their 105-inch Ultra HD television which was first shown at CES on sale for a cool $120,000.

  • iPhone 6 Production Run, MASSIVE Claim Insiders

    iPhone 6 Production Run, MASSIVE Claim Insiders
    Every year when Apple launches new iPhones, it has increased its production run to cater for the demand that seems to follow Apple launches and this time round the iPhone 6 is said to be bigger than ever due in part to new Apple markets.