"It's a great online, low cost business that lets customers purchase and manage their own services. This model offers opportunities for growth, particularly for consumers wanting online sales and support."

Telstra plans to keep the Adam brand and run the company as a stand-alone subsidiary. Adam's executive chairman, Greg Hicks, will stay with the company as a consultant after the sale is complete, it said. Telstra doesn't plan to cut any jobs at Adam as result of the deal.

Hicks said in a statement that the agreement "will help cement a strong future for the Adam brand, our people, and our customers and represent the next stage of Adam's growth."

"The outcome of this transaction for Adam's existing customers is simple--Adam will continue to provide excellent value-for-money broadband that doesn't compromise on service," Hicks said. "The message for potential new customers is that, with Telstra behind it, Adam will be expanding nationally. We've built a great business with a great team running it and we've got a bright future."

The deal surprised at least one industry analyst.