TPG Is Buying iiNet For $1.4 Billion

Massive news this morning: TPG Telecom is buying iiNet for a whopping $1.4 billion.

Now Read:

TPG Is Buying iiNet: The Questions That Need Answering

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.

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.

iiNet shareholders will vote on the deal at their annual general meeting in June.

The move is being highly recommended by the iiNet Board. iiNet Chairman Michael Smith described the price TPG would pay for the service as “significant”.

“The board views this as a significant reward for shareholders who have shown their faith in iiNet,” he said. “The price of $1.4 billion is a very tangible measure of the value that the extraordinary people of iiNet have created through their innovation, brilliant service and capacity to add value.

The deal would make the pair one of the largest combined ISPs in the country, with TPG CEO David Teoh saying this morning that the total customer base would be around 1.7 million subscribers.

“The combined businesses will provide broadband services to over 1.7 million subscribers and will be well positioned to deliver scale benefits in an NBN environment,” he added in a statement to the ASX.


The Cheapest NBN 50 Plans

It’s the most popular NBN speed in Australia for a reason. Here are the cheapest plans available.

At Gizmodo, we independently select and write about stuff we love and think you'll like too. We have affiliate and advertising partnerships, which means we may collect a share of sales or other compensation from the links on this page. BTW – prices are accurate and items in stock at the time of posting.