Internet provider iiNet will pay $60 million to purchase South Australian-based Adam Internet.
The purchase will add about 70,000 new broadband subscribers to iiNet’s books.
Adelaide-based Adam internet, which provides internet services to South Australia and the Northern Territory, is expected to bring in about $55 million in revenue and $11.5 million in earnings this financial year.
Michael Malone, iiNet chief executive, said the deal would build the company’s customer base.
“Following completion of the acquisition, iiNet will have over 900,000 broadband customers accessing industry leading service levels and a growing suite of telecommunications products at the forefront of industry development,” he said in a statement on Monday.
The company said the Australian Competition and Consumer Commission had already cleared the way for the acquisition, which is subject to standard procedural conditions that are expected to be met by August 31.