Canberra-based telecommunications company TransACT has been sold to internet service provider iiNet for $60 million.

TransACT provides telecommunications services to 150,000 product customers, 50 state and federal government agencies and about 5,000 small businesses in the ACT region.

TransACT chief executive officer Ivan Slavich says the sale is beneficial to both companies.

"We're delighted to join iiNet. We see this as very positive news for our customers and we are looking forward to exploring the benefits that will most certainly flow as our two businesses join together," he said.

He says the sale will not affect services provided by TransACT or customer agreements, and TransACT staff will continue to provide customer service.

"We have much in common with iiNet. We both started small, challenged the bigger guys and built quality networks to even out the playing field," Mr Slavich said.

"TransACT began as an off-shoot business of Actew more than 10 years ago and has made its mark as an innovative and visionary business."

'Business as usual'

TransACT has 280 staff working on operations in the ACT, Queanbeyan and regional Victoria.

iiNet CEO Michael Malone there are no immediate plans to cut jobs.

"A lot of people sometimes misinterpret the words 'business as usual' as meaning there will never be any changes," Mr Malone said.

"This is a business which is going to operate as a stand alone entity in Canberra. As usual, that may mean that there's changes in the staff over the next year or two.

"But certainly as a result of this transaction I wouldn't expect there to be any specific redundancies arising from it."

Mr Malone says the sale puts the company in a good position for future growth.

"This acquisition will deliver significant network assets, while increasing iiNet's presence in the ACT and regional Victoria," he said.

"We are also excited about the strong existing relationship between TransACT and ActewAGL and the resulting growth opportunities for both companies."

'No concerns'

The ACT Government says it has no concerns about the sale.

The government-owned utility corporation ACTEW holds an 18 per cent share holding in TransACT.

Deputy Chief Minister Andrew Barr says the multi-million deal will have very little impact on ACT Government coffers.

"It will mean a small dividend return. An increase in our dividend return through ACTEW but it largely has very limited financial implications for the Territory. It relates more to the company itself," he said.

"We're only a very minor shareholder in the totality of TransACT's operations."

The sale is expected to be completed by the end of the month.

iiNet has recommenced trading on the stock market, after halting last week because of growing speculation about the sale.