TPG buys iiNet for $1.4 Billion

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Announced this morning, TPG will acquire 100% of iiNet for $1.4 billion dollars. The buyout will see TPG become the second largest broadband provider in Australia. TPG’s customer base will skyrocket to 1.7 million subscribers including iiNet’s 60,000 NBN and fibre subscribers – “delivering scale benefits in an NBN environment”. iiNet currently services 975,000 broadband subscribers with 1.9 million broadband, telephony and IPTV services.

In the deal, TPG is offering $8.60 per share which is currently $1.60 above the current share price at the time of writing ($6.80). iiNet shareholders will vote on the proposal in June, however, the company’s directors all support the buyout. The ACCC will also weigh into the buyout as it is subject to regulatory approval.

Source: ITNews