Telecom service provider Eftel (ASX:EFT) has acquired Melbourne ISP Rabbit Internet.
Eftel said the acquisition of the retail service provider adds over 1,500 active internet and telephony accounts to its subscriber base.
CEO, John Lane, said the acquisition will be immediately earnings per share accretive.
“Eftel has traditionally grown strongly by acquiring ISPs, and is now seeking renewed inorganic growth,” he said.
“These smaller customer bases can be added with very little incremental cost, making them very beneficial to the company.”
He added that the company has recently completed a renewal and virtualisation program for its core server infrastructure, giving the company the resources required to grow through acquisitions. Eftel is currently evaluating more potential acquisition targets.
Financial details of the purchase were not disclosed.
Eftel operates Australia's sixth largest broadband network, BroadbandNext, and has offices in Perth and Melbourne. It provides wholesale and retail services, including through dedicated broadband provider aaNet.