iiNet has wasted no time in snapping up South Australia-based ISP Adam Internet after Telstra's bid fell through just a fortnight ago.
As part of the acquisition, Adam Internet's customer will base will grow to over 900,000, adding Adam Internet's 70,000 subscribers located mostly in South Australia and the Northern Territory.
"We believe that this transaction provides real benefit to Adam Internet's customers and staff as it aligns them with iiNet," said Greg Hicks, executive chairman and founder of Adam Internet.
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Michael Malone, iiNet's CEO, said: "This acquisition further builds on our strategy to grow scale in the national residential and business broadband segments."
iiNet will also acquire Adam Internet's new datacentre, DSLAM equipment and fibre network infrastructure.
Announced earlier today, the acquisition will be finalised by August 31 after "standard procedural conditions" have been met, according to a statement from iiNet.
The Australian Consumer and Competition Commission (ACCC) has already approved the transaction.
iiNet was one of many telcos that had initially voiced concerns that Telstra's proposed acquisition could have led it to offer Adam Internet customers better prices due to it being the wholesale owner of Australia's fixed copper network.
Telstra announced two weeks ago that it had dropped its bid for Adam Internet because it was not able to get the ACCC's approval, which believed Telstra's acquisition would have lessened competition in the market.