Australia's third largest ISP, iiNet has made its latest acquisition, Netspace. 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 $40 million deal brings iiNet's total subscriber base closer to their 15% target of the total broadband and telecommunications market in Australia.
iiNet whose heartland is based in Western Australia had been looking to acquire an east coast ISP for sometim
e. Netspace was seen as a natural fit due to its extensive roll outs in Victoria and Tasmania. Netspace has DSLAM's in several exchanges that iiNet currently does not.
"This deal puts the combined businesses at over 520k customers and over $500m of revenue. It gives iiNet a physical office in Melbourne and much stronger position in Victoria and Tasmania, areas where iiNet has been traditionally weak" said Michael Malone, CEO of iiNet.
It's been a little over two years since iiNet's last big acquisition, Westnet and with the company now solidly cementing itself as a major rival to the big two of Telstra and Optus, competition in the telecommunications market has never been better.
Malone was quick to alleviate fears of Netspace customers saying "It's business as usual."
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