iiNet has reached an agreement to acquire Adam Internet for $53.1 million, a deal that will immediately expand its customer base to over 900,000 broadband subscribers.
It will add 70,000 new customers and a number of South Australian business and government clients using data center, hosting and cloud services. iiNet will also gain additional data center, DSLAM and fiber network infrastructure.
Besides gaining a broader set of assets, the competitive Australia-based provider said that it sees an "opportunity to increase the bundled product offering to Adam Internet customers from iiNet's existing product suite."
The CLEC has forecast FY14 revenue of $49 million and EBIDTA of $10.2 million, and predicts cost synergies from bandwidth and backhaul as well as the integration of systems and suppliers.
"Like iiNet, Adam Internet has a loyal customer base and strong reputation in its core markets," said Michael Malone, CEO of iiNet, in a release. "This acquisition further builds on our strategy to grow scale in the national residential and business broadband segments."
Originally, Australia's incumbent telco Telstra made a bid on Adam Internet last October, but that deal fell through after it could not meet the requirements of Australian Competition and Consumer Commission (ACCC) before the end of June deadline.
Having already gained the ACCC's clearance, iiNet said the acquisition will be completed by the end of this August.
iiNet has been on an aggressive acquisition trail in recent years. In addition to Adam Internet, the CLEC has purchased Internode and TransACT.
- see the release
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