iiNet to acquire Adam Internet for $60m

The ACCC has already given the acquisition by iiNet clearance to go ahead

iiNet has entered into an agreement to acquire Adam Internet for $60 million in cash following Telstra's announcement that it had not received approval from the competition regulator in time for its planned acquisition of the independent ISP to go ahead.

The acquisition of the Adelaide ISP by Telstra was originally announced in October last year, but the deal was met by opposition from Vodafone, iiNet and Macquarie Telecom.

The Australian Competition and Consumer Commission expressed concerns that the Telstra acquisition could result in a reduction in competition in the retail fixed voice and broadband services.

The ACCC has already given clearance for the acquisition by iiNet to go ahead.

Adam Internet has around 70,000 broadband customers in South Australia and the Northern Territory and will build on iiNet’s 830,000 broadband subscribers in South Australia.

iiNet said the acquisition would increase the opportunity for bundled products to be offered to Adam Internet customers through its current product suite.

“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,” Greg Hicks, executive chairman and founder of Adam Internet, said in a statement.

“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,” Michael Malone, iiNet chief executive officer, said.

Follow Stephanie McDonald on Twitter: @stephmcdonald0

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Tags iiNetAdam InternetThe Australian Competition and Consumer Commission (ACCC)

More about Adam InternetAustralian Competition and Consumer CommissionAustralian Competition and Consumer CommissionIinetMacquarie TelecomTelstra CorporationVodafone

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