Shares in iiNet Limited (ASX:IIN) jumped 8 per cent yesterday after the internet service provider confirmed it will bid $60 million for Canberra-based telecommunications company, TransACT.
iiNet says it has entered into a binding agreement to buy TransACT as part of its strategy of building scale through consolidation.
TransACT has total recurring annual revenue of around $80 million and EBITDA of $17 million.
iiNet CEO Michael Malone says the acquisition will cement the company’s position as "the new number two provider" of DSL broadband.
Shares in iiNet jumped 8.05 per cent yesterday, closing at $2.55.
In the 12 months to June 30, 2011 iiNet reported a net profit of $33.4 million.
