iiNet acquires majority stake in Tech2 Group

iiNet has purchased a 60 percent interest in professional technology services and solutions provider Tech2 Group for an undisclosed amount.

iiNet CEO David Buckingham said the acquisition will complement the company's existing customer service and sales channel, and it will help expand iiNet's ability to provide nationwide IT support and ready-built home installation capability, particularly in the area of NBN services.

"The partnership with Tech2 Group will allow us both extend our brand and provide a more comprehensive service to our customers, particularly through the delivery of NBN," he said.

Tech2 Group has 650 staff and contractors who assist residential and business customers across Australia in carrying out services including communications build services, remote and on-site technical support, and installation services through its brands tech2home, tech2business, and gizmo.

Last month, the ISP provider reported a 7 percent jump in revenue and a 19 percent lift in net profit after tax for the 2014 financial year. In its results, iiNet recorded revenue of AU$1.006 billion, earnings before tax, interest, depreciation, and amortisation (EBITDA) of AU$196 million, and a 19 percent jump in underlying net profit after tax of AU$65.8 million.

During the last financial year, the company managed to add 40,000 new broadband customers in the year through organic growth, and 70,000 through the acquisition of Adam Internet in August 2013, bringing its customer base to 950,000, taking up a total of 1.83 million services at the end of the last financial year.