Menu
Has 2degrees snapped up a Christchurch ISP?

Has 2degrees snapped up a Christchurch ISP?

2degrees is widely expected to announce the acquisition of Christchurch-based Internet Service Provider Snap Internet, for a rumoured fee of $26 million.

2degrees is widely expected to announce the acquisition of Christchurch-based Internet Service Provider Snap Internet, for a rumoured fee of $26 million.

By revealing a “major development regarding the future of the business” to media at 10am Monday March 23, key industry figures believe the telco will officially confirm the deal with the 100% kiwi owned and operated business, which includes $10 million in cash.

Billed as the “worst kept industry secret” by sources close to Computerworld New Zealand, negotiations between the two companies have been ongoing for some time, having formed a marketing partnership offering discounts to customers who buy broadband from Snap, and mobile services from 2degrees.

So in that respect a potential merger is nothing new, with the acquisition predicted by Computerworld New Zealand columnist Brendan Ritchie, CEO of DTS, in January, who forecasted strong market consolidation across New Zealand and Australia.

With the deal likely to be public knowledge in the coming days, 2degrees CEO Stewart Sherriff previously confirmed the company’s plans to move into the fixed-line market, adding further weight to the widely-held industry belief that an acquisition is imminent.

Led by CEO Mark Petrie from Christchurch, Snap Internet is “100% kiwi owned and operated”, providing broadband and home phone services across the country.

In being honoured as the TUANZ ISP of the year for three years running, the company is making a big play within the broadband market, offering a range of home, work and enterprise services to customers.

Given a deal is close, the acquisition will also put to bed strong rumours that the telco was putting up the ‘For Sale’ sign, a move completely rejected by Sherriff during an exclusive interview with Computerworld New Zealand in September last year.

“There’s no ‘for sale’ sign up,” Sherriff confirmed at the time. “As for 2degrees acquiring companies? It is always a possibility. I cannot rule out that there might be an acquisition.”

Six months on it appears that possibility has now become a reality.

For the official release, click here

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags 2degreesmobilebroadbandsnap internet

Slideshows

Meet the leading HP partners in New Zealand...

Meet the leading HP partners in New Zealand...

HP has recognised its top performing partners in New Zealand at the second annual 2016 HP Partner Awards, held at a glittering bash in Auckland. The HP Partner Awards recognises and celebrates excellence, growth, consistency and engagement of its top partners. This year also saw the addition of several new categories, resulting in 11 companies winning across 11 award categories.

Meet the leading HP partners in New Zealand...
Channel comes together as Ingram Micro Showcase hits Auckland

Channel comes together as Ingram Micro Showcase hits Auckland

Ingram Micro outlined its core focuses for 2017 at Showcase in Auckland, bringing together the channel for a day of engaging keynotes, compelling breakout sessions and new technologies.

Channel comes together as Ingram Micro Showcase hits Auckland
Show Comments