iiNet embarks on acquisition quest

iiNet embarks on acquisition quest

Western Australian ISP, iiNet, has satisfied the necessary requirements to acquire the customer databases of ISP’s in regional Victoria and Tasmania, and has another deal in the works for an acquisition in New South Wales.

In December 2002, the ISP announced its intention to acquire the customer bases of and Ruralnet from fellow ASX-listed company Local Telecom and Internet for $2.25 million. The deal was subject to Local Telecom and Internet shareholder approval. That has now been granted.

Managing director of iiNet, Michael Malone, said the company was also in due diligence to acquire an 11,000-subscriber ISP (Internet Service Provider) operating in NSW and the ACT.

“A year ago, we were a very successful dial-up ISP in Western Australia," Malone said. "We were one of the few to come through the dot-com crash cashed up. The idea now is to turn ourselves into a national provider of broadband.”

However, Malone said that iiNet could not compete with the likes of Telstra and Optus with regards to advertising and marketing as the telco’s scramble to pick up broadband customers.

“Growth by acquisition becomes the only way to go,” he said. “We are hoping these companies will be so impressed by our high level of service, they will migrate to broadband with us.”

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