Two of Australia's leading Internet service providers were snapped up last week when AAPT Telecommunication acquired Connect.com and emerging carrier Davnet bought Magna Data.
AAPT secured the last 59.9 per cent of Connect.com from shareholders Sirius Technologies and National Australia Investment Capital - a subsidiary of the National Australia Bank. It already owned 40.1 per cent of the corporate ISP. AAPT officials claim the acquisition positions the company as a major commercial and corporate IP applications solutions provider, intending to cover key Internet services markets including wholesale ISP, consumer and business markets.
"AAPT will preserve the integrity of Connect as a business unit. The name will stay the same," said John Stuckey, CEO of Connect.com.
Stuckey added that the deal provides both organisations with a strong opportunity to leverage the other's resources, citing a merge of Internet services into AAPT's Smartchat consumer client base.
Sirius company secretary David Marshall says Sirius came to the table "a willing shareholder". Marshall claims the deal - which saw Sirius walk away with a cash amount in excess of $4 million - will facilitate the company in bringing new products to market, paying debts and investing in new business growth.
Meanwhile Davnet, one of the new carriers on the block, acquired Magna Data in a deal worth between $20 and $30 million. Like Connect, Magna Data will retain its name and continue under the same management.