Telstra to buy Adam Internet

Telstra to buy Adam Internet

Summary: Telstra has entered an agreement to buy internet service provider Adam Internet.

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TOPICS: Telcos, Telstra
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Telstra has made its first major retail acquisition, entering an agreement to purchase Adelaide-based internet service provider (ISP) Adam Internet, subject to regulatory approval.

The Courier-Mail reported that the deal was rumoured to be worth more than AU$50 million and that the company had called an emergency meeting for staff late last night to discuss the deal, however Adam Internet owner Greg Hicks reportedly described this as "total bulls**t."

This morning, Telstra announced that, subject to approval from the Australian Competition and Consumer Commission, Telstra will acquire Adam Internet, including its Adelaide datacentre and fibre.

Under the deal, the Adam Internet brand will remain as a separate subsidiary of Telstra.

"Adam is a respected brand with a loyal customer base in South Australia. It's a great online, low cost business that lets customers purchase and manage their own services. This model offers opportunities for growth, particularly for consumers wanting online sales and support," Telstra's Innovation Products and Marketing Group Managing Director Kate McKenzie said in a statement.

"Customers trust the Adam brand, and we'll certainly be keeping it as we work towards further growth under Adam's first class management team."

Hicks will stay with the company, and no other staff changes are expected at this time.

"We've built a great business, with a great team running it, and we've got a bright future. Adam Internet customers can continue to contact us in the normal way," Hicks said.

The company's firmer managing director, and Greg Hicks' son, Scott Hicks left the company in August after 17 years with Adam Internet.

When iiNet bought out Adelaide rival Internode at the end of 2011, Adam Internet put out statements crowing about the company being the last independent ISP in the state.

"Adam Internet is the only true remaining South Australian ISP," the company said in a press release in July.

A press conference to discuss the deal has been announced for 11 a.m. AEDT.

Topics: Telcos, Telstra

About

Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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3 comments
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  • How sad

    I can't think of any scenario under which this is good news for Adam customers like myself. Cue a churn to Internode.
    lisaonzdnet
  • Just when I thought I ditched those useless telstra buffoons!!!

    How depressing this news is. While I can understand that their business needs to survive. The problem for me is that Telstra are so mind-numbingly incompetent unable to communicate (there's the irony) between their own departments, that nothing you do when setting up service with them will avoid all the misinformation and disasters that one must endure...its a long long story but in a nutshell, I've always been so happy to be free of Telstra... At the first sign of trouble I'm researching the next best teltra free 'provider' and abandoning ship!!!!
    alfonsi12
  • Worst news I've heard all year.

    This is terrible, Telstra will destroy this great South Australian ISP.
    Internode were bought out and have also gone to shit.

    There are no decent options left :(
    Alex Pine