iiNet to live on as a 'premium brand' for TPG
- 13 March, 2015 12:49
iiNet will live on as a "premium brand" if TPG's acquisition of the ISP goes ahead, TPG executives said at an investor briefing this morning.
However, the fate of iiNet's other brands — Internode, TransACT, Westnet, Adam Internet and Netspace — has not yet been decided.
TPG announced this morning it would seek to acquire iiNet. The move has the support of iiNet's directors.
"The merger is complementary both from a geographic perspective as well as a market segment perspective," TPG CFO Stephen Banfield said.
"iiNet is particularly strong in Perth and Adelaide, which complements TPG's east coast strength," the CFO told the briefing.
"TPG provides leading value based services whilst iiNet offers a more premium customer service led offering. iiNet has a strong SME business, while TPG's corporate division is heavily focused on corporate and government clients".
The CFO said it was too early to quantify potential synergies from the acquisition.
"An important part of our strategy will be to retain both brands and iiNet's high Net Promoter Score is a very key strength of its business," Banfield said.
"Definitely we want to keep the brand," TPG COO Craig Levy said.
"We respect the brand and value the iiNet brand — it's a very strong brand in Australia and amongst its customers, and the NPS customer satisfaction scores that have been coming out are telco/ISP industry leading and excellent for business."
General counsel Tony Moffatt said that TPG this morning had contacted the mergers division of the Australian Competition and Consumer Commission about the proposed acquisition and that the ACCC would conduct a public review.
Moffatt downplayed any suggestion of a threat to competition in the market.
"After this transaction there will still be a very strong level of competition within the communications market in Australia," Moffatt said.
"There's some pretty powerful competitors who are operating in this market and so we consider that, notwithstanding [this] transaction competition is alive and well and we're confident to get through the ACCC process."