New Zealand internet service provider Slingshot bought 9,000 customer contracts from rival Woosh today, focusing on fixed line users and those capable of receiving fixed line services.
Woosh was founded in 2003 as a wireless ISP, but has seen its customer base eroded in recent years as both copper broadband and the availability fibre has improved.
The company's last annual report, to 31 August 2014, revealed sales had declined from NZ$16 million to NZ$12.5 million during the year.
Mark Callander, chief executive of M2 NZ, which owns Slingshot, said the acquisition of all of Woosh's fixed line and "transitional capable" wireless customers is a natural addition to the Slingshot business.
"Slingshot has worked hard to become the leading ISP for service, and I'm confident that the Woosh customers will like their new home," Callander said.
Woosh was bought by California-based Craig Wireless for US$5 million in 2011. At the time it said Woosh had real value in the wireless spectrum it owned and its tower infrastructure.
As a result of a NZ$1.3 million loss in 2014, Woosh's current assets exceeded its liabilities, casting uncertainty over whether it could continue as a going concern. In response it undertook cost cutting measures while Craig Wireless agreed in writing to support the business, if necessary, for a further 12 months.
Customer migration to Slingshot is expected to take around 90 days. Woosh has not responded to a request for comment.