RealTime IT News

PSINet Invests in Xpedior, Gains Majority Ownership with Metamor Acquisition

PSINet today announced it invested $50 million in Xpedior, with the goal of accelerating Xpedior's Global Expansion.

E-business services provider Xpedior Incorporated and PSINet also announced plans for a global business alliance.

According to the companies, the global business alliance and the funds are expected to assist Xpedior in expanding its growth plans for 2000 and beyond.

This news follows the closing of PSINet's acquisition of Metamor Worldwide, Inc. (Quote Nasdaq:MMWW) (see related ASP-News story, Metamor Extends Offerings, Announces Merger with PSINet,June 14th, 2000).

Metamor previously held an 80 percent interest in Xpedior, but now PSINet will have 80 percent ownership of Xpedior, allowing Xpedior to continue its operation as an independent company.

Under the terms of an agreement signed today, PSINet plans to invest $50 million in Xpedior through the purchase of stock that will have an initial conversion rate of $37.50 per share.

David Campbell, president and chief executive officer, Xpedior, believes this investment, combined with the strategic business relationship with PSINet, will expand company growth plans.

"The relationship highlights the global focus of both companies to deliver eBusiness applications and services to corporate and government customers," he said.

Harold Wills, president and chief operating officer, PSINet said the company views the investment as a key strategic relationship presenting both companies an opportunity to strengthen their global enterprises.

"Together, we believe we can set a new standard for next-generation telecommunications and eBusiness solutions in the B2B sector worldwide," he said.