iiNet Acquires Netspace

Submitted by Share Trading on 29 March, 2010 - 11:32

iiNet (IIN), an Australian internet service provider, has agreed to acquire a rival ISP for $40 million. The acquisition will be 100% debt funded. The condition of the purchase will include an expected completion by 30 April 2010 with existing owners to exit.

The acquisition of Netspace by iiNet will increase the company's market share in Victoria and Tasmania and also increase coverage areas of DSLAM presence. It will also increase the scale of the iiNet business, its purchasing power and adds a new office in Melbourne. The combined company will have 550,000 DSL subscribers.