It's time to rethink your infrastructure vendor relationship
Conclusion Leading IT organisations now recognise that selecting and integrating a mix of best-of-breed servers, storage and networks no longer adds value to their organisation. Instead they are purchasing Integrated Systems from a single...
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Too early to judge iiNet’s acquisition of Internode - voiceanddata - 14 Jan 2012
iiNet’s acquisition of Internode has caused a great deal of contention among Australian consumers, but it’s too early to determine the true effects of the deal.
The deal was revealed late last year, mere days before Christmas - the 22nd of December to be precise. Under the terms of the deal, iiNet will acquire 100% of the shares in both Internode and its sister company, Agile. The deal will cost iiNet a total of $105m in cash and shares. The sale is expected to be completed by 29 February 2012.
According to Internode, both Internode and Agile will continue to operate as separate business units within the group, each retaining their existing staff and offices.
Internode’s current staff, including founder Simon Hackett, will continue on with the company. As part of the deal, Hackett will pocket a 7.5 % equity stake in the iiNet group, making him a Significant Shareholder in the listed company.
Often in such a merger, the absorbed company inherits the philosophies and values of the parent company.