Iinet buys Westnet

Internet service provider (ISP) iinet has announced plans to buy Perth based ISP, Westnet for the sum of $81 million.

Internet service provider (ISP) iinet has announced plans to buy Perth based ISP, Westnet for the sum of $81 million. The move will secure the company’s position as the third largest ISP in Australia.

The company’s shares jumped over 10% after making the announcement of the purchase. Iinet plans to fund the sale by releasing 25.6 million new shares at at $1.60 each to investor clients of Euroz Securities.

The merger with Westnet, will deliver 215,000 phone and internet subscriptions to the Iinet account, raising Perth-headquartered iiNet’s total to more than 680,000.

IiNet, plans to retain the Westnet brand and staff, with Westnet continuing as a separate operating entity.

Source: AAP

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