Category Sponsorship Banner Left

Category Sponsorship Banner Right

×

Warning

JUser: :_load: Unable to load user with ID: 63

Category Sponsorship Banner Middle

Thursday, 22 December 2011 16:57

iiNet to buy Internode for $105m

By

iiNet (ASX: IIN) is to acquire Australia's largest privately owned ISP, Internode for $105m.

Internode's sole shareholder, Simon Hackett, will receive 12 million iiNet shares (7.5 percent of the combined entity) and the balance, net of Internode debt, in cash. The deal is expected to be completed by the end of February.

iiNet said that Internode would trade as a separate business unit, retaining its brand under the management of Hackett and his team.

Adelaide based Internode has approximately 260,000 active Internet and phone services, including approximately 190,000 broadband subscribers, of which 15,000 are off net and expected to migrate to iiNet's networks. The company is expected to achieve FY12 revenue of approximately $180m and EBITDA of $25m.

iiNet expects synergies to contribute incremental EBITDA of $7 million in FY13, and said that $105 million acquisition price represented a 4.2x expected pre-synergies FY12 EBITDA multiple and a 3.3x post-synergies pro forma EBITDA multiple.

iiNet said there would be significant synergies available from the off-net to on-net migrations, integration of bandwidth, backhaul, inter-capital transmission and other supplier contracts and systems.

The Internode DSLAMs will extend iiNet's DSLAM footprint to a further 36 exchanges. Internode has active DSLAMs in 202 exchanges, plus four built in NT and awaiting backhaul installation and a further two planned

iiNet CEO, Michael Malone said: "Internode is an attractive acquisition, consistent with our strategy of building scale in anticipation of the national broadband network (NBN) market. Internode's experienced management team and excellent customer satisfaction record will allow iiNet to efficiently grow its presence in the South Australian and Eastern State markets."

Hackett has agreed to standstill and tender provisions with iiNet for a period of 12 months from the date of completion. The standstill provisions prevent him from acquiring or soliciting a shareholding in iiNet greater than 7.5 percent of its issued capital.

Under the tender provision Hackett has agreed to tender his (and affiliates) shareholding in iiNet into any takeover offer, scheme of arrangement or other merger recommended by a simple majority of the iiNet board.

The acquisition will be funded by the extension of iiNet's existing bank financing facilities to $300 million, and will leave it with net debt of about $250m.

You can read more stories on telecommunications in our newsletter ExchangeDaily, click here to sign up for a free trial...


Subscribe to Newsletter here

WEBINAR 12 AUGUST - Why is Cyber Security PR different?

This webinar is an introduction for cyber security companies and communication professionals on the nuances of cyber security public relations in the Asia Pacific.

Join Code Red Security PR Network for a virtual conversation with leading cyber security and ICT journalists, Victor Ng and Stuart Corner, on PR best practices and key success factors for effective communication in the Asian Pacific cyber security market.

You will also hear a success story testimonial from Claroty and what Code Red Security PR has achieved for the brand.

Please register here by 11 August 2020 and a confirmation email, along with instructions on how to join the webinar will be sent to you after registration.

Aug 12, 2020 01:00 PM in Canberra, Melbourne, Sydney. We look forward to seeing you there!

REGISTER NOW!

PROMOTE YOUR WEBINAR ON ITWIRE

It's all about Webinars.

These days our customers Advertising & Marketing campaigns are mainly focussed on Webinars.

If you wish to promote a Webinar we recommend at least a 2 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site itwire.com and prominent Newsletter promotion https://www.itwire.com/itwire-update.html and Promotional News & Editorial.

For covid-19 assistance we have extended terms, a Webinar Business Booster Pack and other supportive programs.

We look forward to discussing your campaign goals with you. Please click the button below.

MORE INFO HERE!

BACK TO HOME PAGE

BACK TO HOME PAGE

WEBINARS ONLINE & DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Interviews

Guest Reviews

Guest Research & Case Studies

Channel News

Comments