iiNet has snapped up Adam Internet for A$60 million ($53.4 million), after a deal with Telstra for the ISP fell through last month.
Telstra abandoned the planned takeover of Adelaide-based Adam Internet in July after the incumbent carrier failed to resolve competition issues raised by the Australian Competition and Consumer Commission (ACCC) before the deal’s cut-off date.
In a statement released Monday, iiNet said the ACCC had already cleared the way for the acquisition, which is subject to standard procedural conditions that are expected to be met by August 31.
Adam Internet, which provides internet services to South Australia and the Northern Territory, is expected to bring in about A$55 million in revenue and A$11.5 million in earnings this financial year, iiNet said said.
The acquisition will also add about 70,000 new broadband subscribers to iiNet's books as well as a range of key South Australian business and government clients consuming data-centre, hosting and cloud services.
iiNet chief executive Michael Malone said the deal would reinforce the DSL provider’s position in the national residential and business broadband segments.
“Following completion of the acquisition, iiNet will have over 900,000 broadband customers accessing industry leading service levels and a growing suite of telecommunications products at the forefront of industry development,” said Malone.