iiNet buys 60% stake in Tech2

Perth Internet provider iiNet has acquired a 60 per cent stake in New South Wales-based technology firm Tech2 Group for an undisclosed amount.

Tech2 provides technology services and solutions to residential and business customers across Australia with 650 people on staff.

“The partnership with Tech2 will allow us to both extend our brand and provide a more comprehensive service to our customers, particularly through the delivery of national broadband network,” iiNet chief executive officer David Buckingham said.

“Importantly, there is a strong cultural alignment between iiNet and Tech2 on the approach to customer service and focus on NPS.”

Tech2’s brands specialise in home entertainment solutions and tech support services, as well as call centre support, while providing telecoms infrastructure and installation services for the NBN.

iiNet said the investment in Tech2 would provide a new sales channel to quickly expand its ability to provide nation-wide IT support, along with its ready-built home installation services.

“Securing iiNet as a supportive shareholder represents a unique opportunity to accelerate our growth plans,” Tech2 managing director Glen Powys said.

“We believe the transaction provides added benefits to Tech2’s customers and staff as we draw on iiNet’s experience, scale and support.”

iiNet said it was being advised by Azure Capital, with legal advice being provided by K&L Gates.

Its share price rose by 0.52 per cent to $7.75 per share at 12:45pm.