TECHNOLOGY SPECTATOR: iiNet's Christmas shopping spree

The Perth-based ISP has finally got its hands on Internode, a move that should provide a handy defence against TPG and allow iiNet to turn up the heat on Optus.

Technology Spectator

It was always on the cards, but iiNet’s move to snap up Internode three days before Christmas caught almost everyone on the hop. The Perth-based internet service provider’s interest in adding Internode to its fold was never in doubt but there was a question mark over whether Internode boss Simon Hackett was ever going to acquiesce to a deal.

That question was answered yesterday when iiNet boss Mike Malone shook hands with Hackett on a $105 million deal that will see Internode become part of Malone’s sprawling ISP empire. The deal, a combination of cash and scrip, will let iiNet add 190,000 subscribers to its customer base and 260,000 active services. It will also see Hackett receive a placement of 12 million shares, adding up to a 7.5 per cent stake, in iiNet. The acquisition is expected to boost iiNet’s fiscal 2012 revenue by about $180 million and will be completed by February 29.

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