They’re the two of Gizmodo readers’ favourite ISPs — but soon they will be one. iiNet is buying Internode in a $105 million deal.
The deal is expected to be completed by the end of February. iiNet has maintained some of its other acquired brands — Westnet and Netspace being the clear examples — and Internode will also continue as a separate business unit. “Off-net” customers — those using a service wholesaled from Telstra — will be migrated to the iiNet network. Apparently that covers 15,000 of Internode’s 190,000 customers.
There’s a press conference at 1630 today and we’ll run all the in-depth news after that.
UPDATE: How The iiNet Deal Affects Internode Customers
• Internode and its sister company Agile will continue to operate as separate business units within the iiNet group, retaining their current staff and offices.
• The current management team, including founder Simon Hackett (pictured right) , are all continuing with Internode
• Mr. Hackett has accepted an offer that includes granting him a 7.5 per cent equity stake in the iiNet group.
iiNet is purchasing 100 per cent of the shares in both Internode and Agile. Internode and Agile will continue to operate as separate business units within the group, retaining their current staff and offices. The current management team, including founder Simon Hackett, are all continuing with the company group.
All of our customer services and the quality of care from our dedicated and friendly staff members will continue. With access to larger ADSL2+ coverage of the iiNet group (who use the same DSL equipment as Internode), customers can look forward to a dramatic increase in the geographic reach of our flagship ‘Easy Broadband ADSL2+’ and fetchtv services.
Rowan
Thursday, December 22, 2011 at 4:54 PMVery disappointing…
Sam
Thursday, December 22, 2011 at 5:07 PMThis has been a long time comming.
DarthDVD
Thursday, December 22, 2011 at 5:18 PMNOOOOOOOOOOOOOOOOOOOOOOO
Penmonicus
Thursday, December 22, 2011 at 5:20 PMHoly crap.
Disappointing, though. I was proud of Internode being an SA company.
110 million doesn’t sound like much, though – isn’t that only about a year’s revenue?
Richard
Thursday, December 22, 2011 at 10:43 PMLooks to be about that. However profits another matter entirely and probably more relevant.
Normandy
Thursday, December 22, 2011 at 5:22 PMWhat does it mean you wil be migrated to the iinet network? Will we loose our email address. Access to the internode game servers ?
olearymo
Thursday, December 22, 2011 at 5:25 PM“Internode will also continue as a separate business unit”
“continue as a separate business unit”
“separate business unit”
“separate”
Normandy
Thursday, December 22, 2011 at 5:45 PM“Off-net” customers — those using a service wholesaled from Telstra — will be migrated to the iiNet network. Apparently that covers 15,000 of Internode’s 190,000 customers. So what does that mean…. …?
Steev
Thursday, December 22, 2011 at 7:07 PMNice Ned quote!
Captain_Awesome_pants
Thursday, December 22, 2011 at 5:29 PMWell fuck… I hope the prices don’t go up I was planning on changing to them but now… hmm
Adam at CompareBroadband
Thursday, December 22, 2011 at 5:38 PMLess than a year’s revenue. Simon knows something the rest of us don’t.
Nath
Thursday, December 22, 2011 at 6:10 PMI would say that’s a lowball figure. If they have 190,000, each one only needs to pay $10 for revenue to be $1.9mil. I pay 6 times that, so…
I agree with Simon, when I first saw the figure I thought it was very very low for one of Australia’s most popular ISP.
Richard
Thursday, December 22, 2011 at 10:48 PMRevenue is pretty meaningless really, it’s the profits and future profits forecast that would mean more to any valuation.
tyler
Thursday, December 22, 2011 at 6:17 PMI remember when net space was perchased by iinet and after that they cut us off and said that we can no longer be on naked broadband and that we now have to switch to a homephone bundle and pay extra. We had N argument with them and they told us we can get out of our contract. Now in the prosses of switching to optus
Brendan
Thursday, December 22, 2011 at 6:20 PMIt could be because they don’t want to replace a blown Flux Capacitor. They are quite expensive in today’s economic climate.
(last pic here
Zarki
Thursday, December 22, 2011 at 7:48 PMNoooo, I just switched from iiNet owned AAPT to Internode, now im ganna have to deal with iiNet owned Internode. pfff.
Noder
Thursday, December 22, 2011 at 10:30 PMThis sucks. Really
DarthDVD
Thursday, December 22, 2011 at 10:52 PMNo more “uncounted” steam downloads… ill have to go back to buying boxed retail!
Lichbane
Friday, December 23, 2011 at 6:15 AMWhat?! All those Steam downloads I’ve been getting off iiNet through the freezing aren’t free?!
Enough FUD please.
DarthDVD
Friday, December 23, 2011 at 1:13 PMoh so they do have steam uncounted…. still dont like iinet.
KADM
Thursday, December 22, 2011 at 11:47 PMcant believe they sold out :(
Mogwai888000
Friday, December 23, 2011 at 6:09 AMbad for competition so bad for consumers.
No more premium ISP any more. I might as well move to dodo and than live with iinet.Mostly because I hate the smarmy jumper wearing iinet knob and otherwise because i’m sure their prices, plans and service will suffer.
Macdave
Friday, December 23, 2011 at 7:07 AMGizmodo, could you please get some specifics about what iinet is doing to “off net” (Easy Reach) customers? This post says they are being churned and I’m concerned it’s a price rise or speeds will drop.
nozlaf
Friday, December 23, 2011 at 8:48 AM““Off-net” customers — those using a service wholesaled from Telstra — will be migrated to the iiNet network. ”
Well looks like i just got raped by my favourite ISP, no more ADSL2+ for me then
Bob
Friday, December 23, 2011 at 12:23 PMFor gods sake, I can’t believe I’m going to have to drop to internet that’s 14 times slower or so just because of this stupid takeover
MarkN
Thursday, December 29, 2011 at 8:00 PMWell this sucks. I was proud that the best ISP, IMO, was a SA company. Now its a WA company?
Will stick with them for now but they better provide the same level of service or they are out!!!