Australian competitive ISP iiNet is nearing the final stages to acquire Canberra-based service provider TransACT for $81.5 million, enhancing its position as the third largest ISP behind incumbent Telstra and SingTel Optus.
Following two months of negotiations, iiNet, according to a TeleGeography report, is now completing due diligence on the deal.
When the acquisition is complete, the service provider will gain TransACT's 300 employees, 80,000 customers, and its fiber and cable assets in Canberra and Victoria.
One of the significant elements of the acquisition is that it will give iiNet a presence in the government and corporate services sector. It will also give Canberra customers another larger communications provider choice besides Optus and Telstra.
Growing through acquisition has been an ongoing theme for iiNet. Since 2008, the service provider has made several acquisitions, including notable deals for Perth-based ISP Westnet (2008), Melbourne-based competitor Netspace (March 2010), and Telecom New Zealand's consumer operations of its Australian subsidiary AAPT (July 2010).
For more:
- TeleGeography has this article
Related articles:
Australia's NBN puts wholesale pricing structure in order
NBN Co. lights up final "First Release" site in Willunga, South Australia
Internode to deliver IPTV service over Australia's NBN network
Optus offers naked DSL