It was one of the worst kept secrets of last week, but iiNet’s just made it official, announcing that it’s entered into an agreement to acquire Canberra-based TransACT for $60 million.
It was heavily tipped that TransACT was keen to sell due to the impending (albeit lengthy) rollout of the NBN, but the official iiNet release plays up more the benefits in selling to businesses that the TransACT acquisition will bring to the company. It quotes CEO Michael Malone as follows:
iiNet’s acquisition of TransACT represents an attractive strategic opportunity to build scale in the ACT market quickly and efficiently. In particular, TransACT’s experienced and passionate management team will allow iiNet to grow its presence in the SME, corporate and government market segments, a key growth area for the Company. We are also excited about the strong existing relationship between TransACT and ActewAGL, the leading utility provider in the region, and the resulting growth opportunities for both companies.”
So now there are even fewer ISPs out there. How small will the Australian market get?