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AAPT Acquires Connect.com.au for A$23 Million

Strategic Insights

— 1 min read

Australia's third largest telecommunications company, AAPT Ltd, has paid A$23 million to acquire the remainder of Connect.com.au Pty Ltd, a major internet service provider in Australia. This move is expected to accelerate AAPT's expansion into the retail and commercial internet business, complementing its ambitions to be a major player in data carrying in Australia. The acquisition will give AAPT access to Connect's 2,000 direct business clients and 16,000 dial-up accounts.

Key Takeaways:

  • AAPT has paid A$23 million for the remainder of Connect.com.au Pty Ltd, a major internet service provider in Australia.
  • The acquisition is expected to accelerate AAPT's expansion into the retail and commercial internet business and make it a major player in data carrying in Australia.
  • AAPT already had a 41.1 per cent stake in Connect, which it acquired for around A$8.2 million.
  • The company paid Sirius Technologies Ltd A$4 million for its 17.7 per cent stake and a National Australia Bank Ltd unit, National Australia Investment Capital, $18.3 million for its 41.13 per cent holding.
  • AAPT has no plans to become an internet content provider, but instead wants to become a major carrier for content providers.
  • The company will use AAPT's existing customer base to dramatically ramp up Connect's growth.
  • Retail internet users will not necessarily benefit from a dramatic reduction in service charges, but AAPT will be competitive.

Statistics:

  • A$23 million: The amount AAPT paid for the remainder of Connect.com.au Pty Ltd.
  • 2,000: The number of direct business clients Connect has.
  • 16,000: The number of dial-up accounts Connect supplies services to.
  • 41.1 per cent: The percentage of Connect's stake AAPT already owned.

Sources:

  • "AAPT buys 63pc of NetCo" by Asia Pulse (C) 1999 Asia Pulse Pte Ltd
  • News Provided by COMTEX (http://www.comtexnews.com)

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