Internet service provider iiNet has confirmed it is in discussions with fellow ISP Netspace about a takeover, but said the money at stake was well below $60 million.
iiNet today confirmed it was in talks following a report in the Australian Financial Review today that it was to purchase Netspace for somewhere between $60 million and $75 million.
"We advise that we have been in discussions with several parties including Netspace, and note that the price currently being discussed is a long way below the price range quoted in the media," the company said in a statement.
Netspace was founded in 1992 by chief executive Stuart Marburg and technical director Richard Preen and is not listed on the Australian Stock Exchange. The company claims to have around 80,000 customers, which would, if acquired, leave iiNet with just under 600,000 customers in total — 400,000 short of where iiNet chief Michael Malone said he wants the company to be by the time the NBN Co access is available.
"The discussions are at an early stage and remain incomplete, and the iiNet board has taken no decision regarding the potential acquisition," iiNet said in a statement today.