iiNet Limited (ASX: IIN) is pleased to announce that it has entered into a binding agreement to acquire Adam Internet Holdings Pty Ltd (Adam Internet) and associated companies for $60 million cash consideration.
Based in Adelaide, Adam Internet has approximately 70,000 broadband subscribers located primarily in South Australia and the Northern Territory.
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.
Greg Hicks, Executive Chairman and Founder of Adam Internet said that the transaction represents a great outcome for Adam Internet customers and staff.
“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. 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,” added Mr Hicks.
iiNet’s Chief Executive Officer, Michael Malone, said the acquisition reinforces the company’s position as Australia’s second largest DSL Internet Service Provider (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. 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,” added Mr Malone.
iiNet is advised by Azure Capital Limited with legal advice being provided by K&L Gates and Herbert Geer.
iiNet will be releasing its FY13 results on 21 August 2013.