EFTel buys third ISP this month

EFTel has continued its acquisitions spree, picking up Queensland-based ISP, Instant Communications. The purchase is its third in the past month.

Instant will add 3000 dial-up and broadband accounts to EFTel's books.

CEO, Simon Ehrenfeld, said the latest acquisition was complementary to its aaNet purchase in July.

EFTel general manager, John Lane, said Instant offered a solid and loyal customer base which could be easily integrated with the aaNet business.

"It means we have immediate synergies between the two operations," he said.

The two deals were also supported by EFTel's acquisition of Western Australian ISP, Ace Online, last month.

According to an ASX company statement, the trio will cost a maximum $2.47 million, based on performance outcomes. They are being funded by the ISP's Westpac acquisition facility, which was secured in February.

"We're always on the hunt for acquisitions and in discussions with several parties at once," Lane said. "This is going to be ongoing. We have completed some acquisitions very rapidly recently and we're not stopping.

The company was keen to pick up ISPs in each state for different reasons, he said.

"WA is our home state and we have a significant base of customers here, while Victoria is our largest customer base. It's good to add customers where we already have strength," he said. "But our aim is to grow nationally as fast as we can and acquisitions have proved a successful strategy for us."

Combined, the three ISPs increase EFTel's active subscriber base by 20,000 to 140,000 active customers.

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