Netspace acquisition complete by iiNet

Recently the Internet service provider iiNet announced that it was taking over Netspace, and the provider has now confirmed that the acquisition has now successfully taken place.

Australian Internet provider iiNet has formed a strategy to enjoy growth through consolidation, and the firm recently announced that it was taking its first steps with the planned acquisition of Netspace. The ISP has now confirmed that this acquisition has now been successfully completed following a number of administrative conditions that had to be satisfied.

Michael Malone, iiNet Chief Executive Officer, said: “Thanks to the support of Netspace’s management and directors, the transaction has been very well received by Netspace staff and customers. We expect to see the business continue to grow and for both iiNet and Netspace to take advantage of the benefits of combined scale, infrastructure and know how.”

After the original announcement about the acquisition Malone had stated: “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.”

A cash advance with a facility of one hundred million dollars from Westpac Banking Corporation has been used to fund the acquisition according to reports. Having announced the acquisition at the end of March the Internet Service Providers announced that the acquisition had successfully gone ahead at the end of April.

Source – iinet