Aims to create broadband powerhouse.

Perth-based ISP iiNet has agreed to acquire privately-held Adelaide-based ISP Internode for $105 million in a deal that creates a broadband powerhouse to challenge the might of Telstra and Optus.

The deal gives iiNet an additional 260,000 active accounts, 190,000 of those being broadband connections. It will also add 36 exchanges to iiNet's network of DSLAMs, capitalising on Internode's strength in South Australia and on the Eastern seaboard.

Once the deal is done, iiNet will boast 15.5 percent of the fixed broadband market and a total of 900,000 customers, nipping...

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