Privately-owned ISP Australia Internet Solutions (AINS) has acquired Sydney-based corporate ISP Data Solve Services for an undisclosed sum.
Established in 1996, Melbourne-based AINS currently provides more than 5000 connectivity services to both corporate (around 500 businesses) and residential customers in Melbourne, Adelaide and Sydney. These services are primarily based around DSL (Digital Subscriber Line), Fibre Optic and Frame Relay connectivity. In the first of what the company promises to be many acquisitions of competing ISPs, AINS has acquired Data Solve Services, a reseller of Request DSL broadband solutions.
The acquisition of Data Solve Services gives AINS a further 70 business clients, including several large multinational companies. Director of sales at AINS, George Pezzutto, said these customers would benefit from the 24x7 support and faster connectivity offered by AINS. Both AINS and Data Solve Services generally serve medium sized companies that have multiple sites – offering WAN and VPN services alongside broadband connectivity. Pezzutto said AINS was looking to acquire several ISPs in its market sector during the next 24 months as it planned to grow from a client base of 500 businesses to more than 1200 businesses.
“We are constantly on the hunt for ISPs to acquire – whether they are big or small,” he said.
Being a private company, such acquisitions would be funded through ‘organic growth’, Pezzutto said.
“The market is changing. There is a period of consolidation ahead,” he said
There had been an excessive number of service providers saturating the market during the Internet boom, Pezzutto said, but ISPs would need more than just connectivity to survive as the race to sign businesses to broadband services ensued.
“Customers are becoming savvier,” he said. “Rather than just being price sensitive, now they are value-for-service sensitive.”