iiNet concludes Internode acquistion

iiNet has confirmed the completion of its acquisition of Internode, some five weeks after it first announced its intention to acquire the South Australia-based internet service provider.

In a statement to the ASX iiNet CEO Michael Malone said the acquisition, worth some $105 million, had run smoothly.

“Thanks to the leadership of Internode managing director Simon Hackett and his team, the transaction has been well received by Internode staff and customers,” the statement reads.

Discussing the decision to acquire Internode, Malone said the company was an attractive acquisition and consistent with the company’s strategy of building out scale in anticipation of the National Broadband Network (NBN).

“Internode’s experienced management team and excellent customer satisfaction record will allow iiNet to efficiently grow its presence in the South Australian and eastern state markets,” he said.

In a separate ASX statement iiNet said that as part of the purchase price for Internode the company had issued 12,072,664 fully paid ordinary shares to Hackett.

At the time of publishing, iiNet shares were last traded at $3.00, representing a payment to Hackett of roughly $36.2 million.

Late last week Internode said it had introduced fibre to the home (FTTH) plans at 20 real estate developments around Australia that align prices with its NBN services.

Starting at $49.95 per month and offering speeds of 12/1 megabits per second (Mbps) with a 30GB data quota, residents at real estate developments in Queensland, New South Wales, Victoria and South Australia will have access to the plans.

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