iiNet Has Acquired Adam Internet After Telstra’s Bid Fell Through Just A Fortnight Ago

iiNet Has Acquired Adam Internet After Telstra’s Bid Fell Through Just A Fortnight Ago

Adam Internet, an Adelaide-based broadband provider has been sold to iiNet for $60 million, after the competition watchdog stymied an earlier deal with Telstra.

The sale delivers Adam Internet’s 70,000 broadband subscribers mostly in South Australia and the Northern Territory, bringing iiNet’s total customer base to 900,000. It also includes a range of South Australian business and government clients using data centre, hosting and cloud services.

iiNet CEO Michael Malone says the $60 million purchase of Adam Internet strengthens his company’s position in the market.

Telstra agreed to buy Adam Internet for $60 million in October 2012, reportedly with the intention of taking the brand national as a low-cost alternative to BigPond, in two-tier model similar to Qantas and Jetstar.

The deal was officially rejected by the ACCC after nine months of deliberation in late July 2013, because of concerns it would give Telstra too much power.

Perth-based iiNet is Australia’s second largest broadband provider behind Telstra. It is listed on the Australian Securities Exchange and shares dipped slightly following the announcement on Monday morning to $6.11, down 0.65 per cent just after noon since opening.

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