iiNet acquires TransACT for $60 million
- 21 November, 2011 10:41
Perth-based ISP, iiNet, has acquired TransACT, for $60 million.
TransACT, an ISP, is based in Canberra but provides home phone and broadband services mainly in the ACT and Victoria.
It specialises in offering bundled Internet, home phone and utility services due to its close ties with energy and water supplier, ActewAGL.
Speculation was rife on the acquisition which was expected to be announced last Friday.
The purchase will bring iiNet “significant network assets” as well as increase the ISP’s presence in the ACT and Victoria. iiNet also cited strong financials and low churn rates as reasons for buying TransACT.
The sale is due to be completed by November 30.
“This move will also accelerate our penetration into the small business, corporate and government sectors, a key strategic focus for us,” iiNet chief, Michael Malone, said in a statement.
iiNet has been on the acquisition trail for some time, buying up smaller ISPs such as Westnet and Netspace.
TransACT stressed while it is being snapped up by iiNet, the company will continue to provide good service to customers.
ACT utility supplier, ActewAGL formed TransACT in 2000 as an open access wholesale service provider. The ISP currently has 10 retail ISPs operating on its network.
It currently has 40,000 customers on its national network.
More to follow.