Perth-based internet service provider EFTel Ltd has acquired Queensland-based broadband provider aaNet, almost doubling the company's broadband customer base to around 40,000, and giving the company around 140,000 active accounts overall.
With a turnover approaching $10 million per annum, aaNet is EFTel's largest ever acquisiton in terms of both revenue and customers.
EFTel had announced a 28 per cent increase in half-year net operating profit, to a record $546,000 in March this year, and was building a large scale acquisition fund, including a $3 million facility from Westpac, earlier this year to expand its acquisition opportunities in the consolidating ISP market.
The conditions of the acquisition were not disclosed in an EFTel announcement to the stock exchange, released today.
The announcement is pasted below.
EFTel Limited (ASX: EFT) today announced the acquisition of the aaNet group, one of Australia's fastest growing broadband communications providers. This acquisition will almost double EFTel's broadband customer base to around 40,000, growing the
company to 140,000 active accounts overall. With turnover approaching $10 million p.a., aaNet is EFTel's largest ever acquisition in
terms of both revenue and broadband customers.
EFTel CEO Simon Ehrenfeld said today, "This is a very exciting deal, and advances EFTel's ambition to become one of the largest broadband providers in Australia. EFTel is well-placed to take advantage of consolidation within the industry, having the resources and the processes to ensure secure and profitable acquisition activity"
"The aaNet business is a large and rapidly expanding broadband ISP, and will provide an additional growth engine to the company as well as new economies of scale. VoIP and other voice products will also be offered to aaNet customers to drive additional
revenue and margin."
"EFTel has worked closely with Telstra to manage the process which has made this acquisition possible. Until early this week it appeared that there was no viable process, but last-minute negotiations proved fruitful. We now have a path forward for other large acquisitions in the broadband space."
