IiNet to acquire TransACT for $60 million

iiNet has announced today that it has entered into a binding agreement to acquire Canberra-based telecommunications company, TransACT for $60 million.

Under the sale and purchase agreement, iiNet will pay $60 million for TransACT, with the acquisition to be 100 percent  funded through existing cash and debt facilities. Completion of the deal is subject to a number of procedural conditions and iiNet says it expects the acquisition to be achieved by the end of this month. Transact, with operations in the ACT, Queanbeyan and regional Victoria, has 40,000 clients across the residential, SME, corporate and government markets.TransACT's Chief Executive Officer, Ivan Slavich, said he and his management team were looking forward to being part of the iiNet team and were "excited about the growth possibilities this presented.""It will be great for TransACT, and our partner AtcewAGL, to have access to a leading national brand. iiNet's reputation for excellent customer service and product research will be then received by our loyal residential, SME, corporate and government customer base," Slavich said.Key aspects of what iiNet's will get when the deal to buy TransAct goes through, include:?    40,000 highly bundled subscribers across residential, SME, corporate and government market segments using more than 140,000 products?    Strong local brand concentrated in ACT and regional Victoria?    Growing SME, corporate and government customer base with complementary datacentre operation in ACT generating near $30m of annual recurring     earnings?    4,500 kilometre network, passing more than 250,000 premises?    Experienced management team with deep commercial relationships in key sectors?    Strong financials - total recurring annual revenue of roughly $80 million and EBITDA of $17 million?    100% cash and debt?funded?    EPS accretive for iiNet shareholders, with synergies available from the integration of systems and suppliers.Malone said iiNet was very enthusiastic about the increased market opportunities that the NBN will bring, and said the company's acquisition of TransACT furthermore strengthens its position."Adding 40,000 new clients, including blue?chip corporate and government bodies, also as strengthening our network and presence in the ACT and regional Victoria, will allow iiNet to furthermore penetrate these key markets and extend our leading customer service and innovative products to a broader audience," Malone concluded.