iiNET today agreed to buy Netscape for $40 million. According to iiNET, on Monday the deal would be funded by debt.

According to Michael Malone, iiNET Chief Executive Officer, this purchase would strengthen the company’s position as the leading challenger brand in Australian telecommunication market.

"This acquisition will bring IINET closer to our target of 15 per cent market share in the fixed line broadband market prior to the commencement of the National Broadband Network", said Mr. Malone.

He mentioned that Netspace gave strong placement to the company’s products, networks and cultures. He also said that the business has got its customer service focus because it has grown strongly in the residential market and has a loyal customer base.

Being the Melbourne based fixed line and internet service it has about 80,000 business and residential customers.

It was also seen that to buy OzEmail, iiNET spent around $100m and after 3 years it bought Westnet for $81m. Around 30 small ISPs were also bought by IINET in the past 4 years.