RealTime IT News

Czech ISP Luko Czech-Net Acquired by U.S. Euroweb

Czech ISP Luko Czech-Net was acquired by U.S. company Euroweb International Corp. for US$1.8 million, half in cash and half in stock shares in Euroweb International.

Luko Czech-Net is the fifth largest ISP in the Czech Republic. It currently operates approximately 150 leased lines and 6,000 dial-up clients.

According to Luko Czech-Net's director and owner Richard Koza, the company earned a Kc 5 million (US$140,000) profit on a Kc 25 million (US$700.000) turnover in 1998.

Euroweb International Corp. (NASDAQ: EWEB) is an American company with Hungarian roots. It has a couple of Internet interests in central and Eastern Europe. It owns several stakes in Hungarian ISPs as well as 51 percent stake in EUnet Slovakia.

Euroweb is currently negotiating other acquisitions in Slovakia, Croatia and Romania.

According to sources, Euroweb plans two additional deals with Czech ISPs. Though no names were disclosed, but the most probable candidate seems to be Czech company Bohemia Net. Bohemia Net has approximately 3,500 dial-up accounts and 300 leased lines, making it the seventh-largest ISP in the country.

The newly acquired ISPs will be merged into one company, with Czech-Net likely to be the new name.