Feeds

Internode falls to iiNet acquisition temptation

Another one bites the dust

Protecting users from Firesheep and other Sidejacking attacks with SSL

Popular Adelaide-headquartered national ISP Internode, a pioneer in Australia’s ADSL2+ market and vocal critic of National Broadband Network price strategies, is to be acquired by number two broadband provider iiNet.

The $AU105 million buy, announced on December 22 to the Australian Securities Exchange, may not be greeted with universal glee by Internode’s devoted and relatively tech-savvy fans.

However, it continues the ongoing ISP consolidation trend in the Australian market, with fixed line growth flattening and with the future of DSLAM infrastructure grandfathered by the rollout of NBN fibre.

At least for now, Internode has said that it will operate as an independent business unit of iiNet, perhaps in an attempt to maintain the junior telco’s reputation as a “geek’s ISP”.

Internode also operates a CBD fibre network in Adelaide, along with VoIP, mobile broadband resale, and some regional wireless services in South Australia.

However, iiNet will also be acquiring a company with extensive experience in getting around Australia’s Internet transit service bottleneck by acquiring its own international capacity, and buying transit in the USA.

iiNet’s announcement to the ASX says it will acquire 190,000 customers and 260,000 active services, with anticipated revenue of $AU180 million for 2012. Internode founder, glider pilot and Tesla enthusiast Simon Hackett will be issued 12 million iiNet shares, with the balance of the transaction to be paid in cash.

Hackett has agreed to remain with iiNet for twelve months after the acquisition is completed, which is expected to be at the end of February 2012.

As was reported earlier this year, Internode had undertaken a mangement restructure which at the time gave rise to speculation that the company would be put on the market.

iiNet is itself subject to takeover speculation as TPG has taken a small, strategic stake in the operation. ®

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.