TPG makes a play for iiNet
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This is massive news for Australian ISPs
iiNet has made a name for itself by buying out other ISPs. The iiNet network of ISPs includes four smaller providers Adam Internet, Netspace, Westnet and the most recently acquired Internode.
The game of musical ISPs continues in the pre-completion of the NBN (National Broadband Network). If the ISP buyout game continues, we might only be left with a few massive players. Haunting imagery of Comcast, Time Warner and AT&T come to mind.
Internet service provider TPG has made a $1.4 billion play for iiNet, in a move that will see the combined group leapfrog Optus to become the country's second largest broadband provider.The buyout will create a telco with combined revenues of $2.3 billion.
The deal would see TPG's customer base balloon to 1.7 million subscribers - including iiNet's more than 60,000 NBN and fibre subscribers - "delivering scale benefits in an NBN environment".
http://www.itnews.com.au/News/401595,tpg-to-buy-iinet-for-14-billion.aspx?eid=5&edate=20150313&utm_source=20150313&utm_medium=newsletter&utm_campaign=newsflash
TPG Telecom will acquire 100 per cent of iiNet, the pair advised the ASX today.The $1.4 billion amount would see iiNet’s shares purchased by TPG for $8.60 each, which is currently $1.80 more per share than their price at the time of writing ($6.80). $8.60 is also a higher price than iiNet shares have ever achieved on the ASX. The most iiNet has ever traded at is $8.36 last December.
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TPG and iiNet are pitching the deal to shareholders by describing the deal as strategic. The pair would see combined revenues of $2.3 billion and it would see a “value-based” ISP merge with a “premium, high-quality” ISP merge. The deal would also see the pair’s broadband footprints complement each other in different regions.*
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iiNet shareholders will vote on the deal at their annual general meeting in June.*
http://www.gizmodo.com.au/2015/03/tpg-is-buying-iinet/