iiNet, a competitive Australian service provider, made it official that it is going to acquire TransACT for AUD 60 million (USD 60 million) following a number of reports that the pair were finalizing the terms of the deal.
Expected to be completed by the end of November, iiNet will gain about 40,000 new subscribers in addition to a HFC network in Victoria and Fiber to the Premises (FTTP) networks at a number of Canberra housing estates.
The acquisition benefits both companies.
By purchasing TransACT, iiNet gains a larger presence in not only the SMB, but also the larger enterprise and government sectors. Likewise, TransACT gains the benefit of a larger parent that has deeper pockets and a well known brand.
Michael Malone, iiNet's CEO, said in an iTnews article that the acquisition is a product of its plan to expand through purchasing other service providers that add key pieces to its service portfolio.
"iiNet's acquisition of TransACT represents an attractive strategic opportunity to build scale in the ACT market quickly and efficiently," he said. "In particular, TransACT's experienced and passionate management team will allow iiNet to grow its presence in the SME, corporate and government market segments, a key growth area for the company."
Ivan Slavich, TransACT's CEO, said the deal will give it "access to a leading national brand."
For more:
- iTnews has this article
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