news National broadband provider iiNet this afternoon announced it had completed its $105 million buyout of rival Internode, a month ahead of schedule.
The pair announced their nuptials in late December just days before Christmas, in a deal which will add some 190,000 broadband subscribers and some 260,000 active services to iiNet’s already extensive customer base, vaulting the company into clear second place in Australia’s ADSL broadband market, ahead of Optus. The deal also extends iiNet’s current ADSL infrastructure and will see Internode managing director Simon Hackett (pictured) become a major iiNet shareholders.
This afternoon iiNet said completion of the deal was subject to “a number of administrative conditions”, which had now been satisfied. “Thanks to the leadership of Internode managing director Simon Hackett and his team, the transaction has been well received by Internode staff and customers,” said iiNet chief executive Michael Malone.
“Internode is an attractive acquisition, consistent with our strategy of building scale in anticipation of the National Broadband Network. Internode’s experienced management team and excellent customer satisfaction record will allow iiNet to efficiently grow its presence in the South Australian and Eastern State markets.” Separately, iiNet noted that it had issued in excess of 12 million shares to Hackett, meaning the Internode chief will own some 7.5 percent of iiNet.
In a post on broadband forum Whirlpool this afternoon, Hackett noted that the transaction had been completed, stating that the two companies had “overachieved” in a good way in the process.
Hackett emphasised that the company remained a separate business unit from iiNet’s retail operation — any customers looking to churn between the pair would do so at “arm’s length”. He wasn’t sure whether that would change in the future, with a “loooong list” of action items currently being discussed between the two companies as the integration progresses.
“This is the end of the beginning, and we are looking forward to doing lots of great stuff together from now on,” the executive added. “So now – onward and upward :)”
Image credit: Internode
Who’s taking bets on when plans and pricing gets standardised – I say by June 2013 all consumer offerings will be dumbed down to the IINET/Netspace/Westnet/AAPT levels.
I’m betting 2014. It will be a sensitive issue for a while.
I expect the NBN pricing to become similar and the ADSL plans chug on as they are.
Actually I think iiNet will find it difficult to ‘dumb down’ internode in the short term. I also don’t believe it’s what iiNet want.
iiNet have a huge footprint, sure but not in business. And not within the market space Internode operates in.
There are advantages in keeping the business “as is” from a customer perspective, and consolidate internally around billing and provisioning, where there real synergies will lie.
Eventually Internode will become integrated, but forced moves will kill any advantages the sale offered.
I’m sorry, perhaps I’m getting old, but did anyone else laugh at Renai’s use of the word “nuptials”. It does conjure some disturbing visuals between Mick and Simon (no offence intended). Or pehaps that’s just my sick mind.
Ya think?
I don’t get it. Why would the image of nuptials between Michael and Simon be disturbing? They’re both good looking guys, if they were gay then they probably would be quite well suited to one another.
Perhaps the most amusing comment ever posted on Delimiter :)
Not that there’s anything wrong with that …..
Y’know …. if you squint at Simon’s pic ….. he sorta looks like Elton John.
/boggle
P.S. OK Renai …. I’ll stop now before I get into trouble.
Already beat the punch.
Already churned to TPG!
And I get better speeds with TPG than I did with Internode (but 40ms more latency to international websites)!
I’ll go to Telstra Bigswap if I have too..I hate iinet
Hopefully Nodes gets some upgrades from IINET
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