Feeds

Internode falls to iiNet acquisition temptation

Another one bites the dust

Top 10 endpoint backup mistakes

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. ®

A new approach to endpoint data protection

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?