Less than two weeks after Telstra decided not to go ahead with its takeover of internet service provider (ISP) Adam Internet, iiNet has stepped in and entered a binding agreement to acquire South Australia-based Adam Internet for AU$60 million.
The deal was announced to the Australian Securities Exchange this morning.
Under the agreement, iiNet will acquire Adam Internet's 70,000 customers located primarily in South Australia and the Northern Territory, a new datacentre, DSLAM equipment, and fibre network infrastructure.
Adam Internet founder Greg Hicks said that iiNet and Adam are a good match.
"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," he said in a statement.
iiNet CEO Michael Malone said that the acquisition fits in with the company's growth strategy.
"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," he said.
The acquisition will first need to clear some "standard procedural conditions", according to iiNet, but unlike Telstra's failed takeover, iiNet has said that the Australian Competition and Consumer Commission (ACCC) has already cleared the takeover.
The deal is expected to be finalised by August 31.
Adam Internet joins a number of other ISPs to be taken over by iiNet, including Internode, AAPT, OzEmail, Westnet, and Netspace.
iiNet this year celebrates its 20th anniversary.