Monday, August 5th, 2013 - Adam Internet

Adam Internet is pleased to announce that it has entered into a binding agreement for its sale to iiNet Limited (ASX:IIN) for $60 million cash consideration.

Adam Internet is pleased to announce that it has entered into a binding agreement for its sale to iiNet Limited (ASX:IIN) for $60 million cash consideration.

Based in Adelaide, Adam Internet has approximately 70,000 broadband subscribers located primarily in South Australia and the Northern Territory.

Acquisition highlights:

• Grows iiNet’s total customer base to over 900,000 broadband subscribers, adding 70,000 new broadband subscribers plus a range of key South Australian business and government clients consuming data-centre, hosting and cloud services

• Addition of a growing, reputable brand to the iiNet stable, complementing existing brands in the Australian market

• Adds new data centre and additional DSLAM and fibre network infrastructure to the iiNet group

• Leverages the experienced management team with strong local relationships

• Expected FY14 revenue of $55.0 million and EBITDA of $11.5 million, with synergies mainly expected from FY15 onwards

- cost synergies available from bandwidth and backhaul as well as the integration of systems and suppliers

• Opportunity to increase the bundled product offering to Adam Internet customers from iiNet’s existing product suite

• Expected to be immediately EPS accretive from FY14 (pre-synergies)

Completion of the acquisition is subject to a number of standard procedural conditions which are expected to be met by 31 August 2013, and the ACCC has already cleared the transaction.

Greg Hicks, Executive Chairman and Founder of Adam Internet said that the transaction represents a great outcome for Adam Internet customers and staff.

“We believe that this transaction provides real benefit to Adam Internet’s customers and staff as it aligns them with iiNet, Australia’s leading ISP in customer service. Adam Internet has long provided customers with innovative products, high quality service and value for money, and this will be further strengthened under iiNet’s ownership,” added Mr Hicks.

iiNet’s Chief Executive Officer, Michael Malone, said the acquisition reinforces the company’s position as Australia's second largest DSL Internet Service Provider (ISP) and the leading challenger in the telecommunications market.

“Like iiNet, Adam Internet has a loyal customer base and strong reputation in its core markets. This acquisition further builds on our strategy to grow scale in the national residential and business broadband segments.

“Following completion of the acquisition, iiNet will have over 900,000 broadband customers accessing industry leading service levels and a growing suite of telecommunications products at the forefront of industry development,” added Mr Malone.

Contact Profile

Adam Internet


Adam Internet provides high quality Internet services to residents, businesses and enterprise organisations across South Australia. Our services expand beyond the standard ADSL2+ broadband connection to include wireless and mobile broadband, VOIP services, data centre and private networking solutions to name a few. With over 25 years experience, Adam Internet is now recognised as one of the State’s top 100 fastest growing companies and one of the top 10 largest ISP’s (Internet Service Provider) in Australia. Adam Internet continues its impressive growth, employing around 200 staff and servicing tens of thousands of customers. The organisation has remained at the leading edge of technology and ahead of competition by partnering with key suppliers, returning profits back into South Australia's economy by investing in communications infrastructure, and delivering excellent customer support and value to its clients. To be eligible for the competition customers needed to either refer a mate or connect to Adam EzyChoice on a 24 months contract between 17th August and 2nd November 2011. Full terms and conditions apply and can be found at www.adam.com.au/mates

Clare Briggs
P: (08) 8423 4151
W: www.adam.com.au

Keywords

Adelaide ISP Adam Internet, iiNet, Internode, Telstra

Categories

Sharing

More Formats