EFTel buys broadband ISP aaNet

Stuart Corner
Saturday, 15 July 2006 03:49

IT Industry - Deals

ASX-listed broadband ISP and telephony provider, EFTel Limited, has acquired another broadband ISP, the aaNet group, almost doubling its broadband customer base to around 40,000.
aaNet has turnover approaching $10 million, making it EFTel's largest ever acquisition in terms of both revenue and broadband customers. EFTel CEO Simon Ehrenfeld said the deal would advance the company's ambition "to become one of the largest broadband providers in Australia."

"EFTel is well-placed to take advantage of consolidation within the industry, having the resources and the processes to ensure secure and profitable acquisition activity," Ehrenfeld said. "The aaNet business is a large and rapidly expanding broadband ISP, and will provide an additional growth engine to the company as well as new economies of scale."

According to Ehrenfeld "EFTel worked closely with Telstra to manage the process which has made this acquisition possible. Until early this week it appeared that there was no viable process, but last-minute negotiations proved fruitful. We now have a path forward for other large acquisitions in the broadband space."

EFTel's share price rose by more than 15 percent following the announcement.