iiNet snaps up Adam,after rival was forced to backout
Perth based telco today announce plans to
acquire Adam Internet for $60 million cash.
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.
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.
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.
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.
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.
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.
a number of conditions, expected to be met by 31 August
2013.
