Adelaide-based internet service provider (ISP) Adam Internet has been sold to iiNet, the Perth company which acquired Internode last year.
The $60 million cash deal follows the collapse of a Telstra-Adam deal after opposition from the the Australian Competition and Consumer Commission.
Adam Internet founder and executive chairman Greg Hicks said today he was delighted to have finally inked a deal.
“We believe that this transaction provides real benefit to Adam Internet’s customers and staff as it aligns them with iiNet, Australia’s leading ISP in customer service,” Hicks said in a statement to the stock exchange.
“Adam Internet has long provided customers with innovative products, high quality service and value for money, and this will be further strengthened under iiNet’s ownership.
iiNet’s chief executive officer, Michael Malone, said the acquisition reinforces his company’s position as Australia’s second largest ISP and the leading challenger in the telecommunications market.
“Like iiNet, Adam Internet has a loyal customer base and strong reputation in its core markets,” Malone said.
“This acquisition further builds on our strategy to grow scale in the national residential and business broadband segments.
“Following completion of the acquisition, iiNet will have over 900,000 broadband customers accessing industry leading service levels and a growing suite of telecommunications products at the forefront of industry development.”
iiNet said the deal would be completed within its existing bank facility, leaving it with a “comfortable debt profile”.
Completion of the acquisition is subject to a number of standard procedural conditions which are expected to be met by 31 August 2013, and the ACCC has already cleared the transaction.
iiNet announced the acquisition of Internode in December 2011 for $105 million and finalised that deal last year.
The two companies continue to manage two separate brands and operate separately.
It’s likely it will use the same technique with the Adam brand of budget internet services.
