iiNet to improve its coverage through acquisition of Netspace

Internet Service Provider iiNet recently announced its acquisition of the smaller, Melbourne Internet service provider Netspace, which will help it to expand broadband services to even more homes.

It was announced recently by the Internet provider iiNet that it was taking over the Melbourne based ISP Netspace. The deal is set to be completed by 30th April this year, and officials from iiNet have said that once the acquisition has been completed it will cement its place as the nation’s third largest Internet Service Provider and allow it to bring broadband and internet to over half a million homes and businesses across Australia.

The announcement that iiNet was taking over Netspace was made at the end of March, and with the deal almost completed it will not be long before iiNet becomes bigger and stronger as a result of its new addition. The acquisition of Netspace was a forty million dollar deal, and goes some way towards the ISPs aim of growth through acquisition.

An official from iiNet said: “This acquisition will bring iiNet closer to our target of fifteen percent market share in the fixed line broadband market prior to the commencement of the National Broadband Network. Netspace is a natural fit for iiNet given the strong alignment of the companies’ products, networks and cultures. It is a great business, having grown strongly in the residential market, and has a loyal customer base given its customer service focus.”

He added: “Our strong balance sheet has placed us in a unique position to remain at the forefront of industry consolidation. We are committed to delivering on our growth strategy, and Netspace is a logical and sensible acquisition for us.”

Source – iinet