iiNet hits the acquisition trail again

Perth-based ISP, iiNet, has entered into an agreement to acquire the Internet services arm of Melbourne-based IT retailer, Virtual Communities.

The ASX-listed company said the buy-out would add 50,000 dial-up customers to its books, along with 2500 broadband subscribers across Victoria, Queensland and NSW.

Although the purchase price has not been disclosed, iiNet said the deal would be comparable to its $6.3 million acquisition of the FlowCom ISP business earlier this year. The ISP will pay for the business in cash.

iiNet public relations manager, Louise Runkle, said Virtual Communities represented a good opportunity for the ISP to further expand its customer base and support services.

"Virtual has a healthy revenue stream from its 50,000-strong customer base," she said.

The company's existing call centre in Melbourne also allowed iiNet to round out its existing network of support facilities in Auckland, Sydney and Perth and help service Victorian and Tasmanian customers, Runkle said.

In an ASX statement, iiNet said it would offer employment to all personnel currently working for the Internet services division, including call centre staff. This incorporated about 55 employees, she said.

Runkle said Virtual now operated services under seven brand names. Several of these resulted from recent acquisitions made by the ISP, including the ISP, Big Blue.

iiNet would not be rebranding any of these existing services at this stage, she said.

"We won't be forcing customers to upgrade immediately to an iiNet product," she said. "But as a customer's contract comes up for renewal, we will be offering a comparable iiNet service."

The transition was expected to take six to seven months, Runkle said.

iiNet's acquisition of Virtual Communities is the latest in a string of company buyouts undertaken by the ISP. Prior to its acquisition of FlowCom in February, iiNet purchased the iHug business in September last year for $30.1 million. It also acquired several regional-based ISPs in 2003.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Nadia Cameron
Show Comments

Father’s Day Gift Guide

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?