Well, so much for my theories. When Telstra pulled out of buying Adam Internet, I figured TPG was the most likely alternative buyer, since iiNet already had a prominent South Australian brand in the form of Internode. Turns out that wasn’t a deal-breaker, with iiNet announcing plans to acquire Adam today.
Picture: Google Maps
The deal won’t be finalised until 31 August, but since (unlike Telstra’s bid) it has already received approval from the Australian Competition and Consumer Commission (ACCC), roadblocks seem less likely. iiNet’s own quarterly results are due to be announced on 21 August.
In the short term, plans for Adam’s 70,000 customers are unlikely to change, but in the medium term, you can expect to see the deals become similar to those offered by iiNet, which typically maintains brands while making the offers identical (a pattern it followed to varying degrees with Westnet, TransACT and Netspace). Internode still has some distinctive offers but also looks increasingly like an iiNet reseller.