Current Australian shares to buy are iiNet Ltd.

iiNet Limited (IIN) has announced it will buy out fellow ISP Netspace for $40 million. The deal appears to be a smart move by IIN, making it one of the shares to buy.

The acquisition will be 100% debt funded, and is expected to be completed by the end of next month.

The acquisition will increase IIN’s exposure in its key markets of Victoria, NSW, and Tasmania. Adding Netspace will grow IIN by about 20%, and boost its market share from 12.4% to 15%.

IIN expects the acquisition to generate over $70 million in revenue, and to add to earnings from next financial year.

This doesn’t even take into account the potential for synergies to boost the bottom line. Given the similarities between the businesses, synergies should be significant.

In terms of shares to buy, IIN soared 7% on the day the deal was announced.  Such a strong rise likely means the market has given the deal a tick of approval.

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