Concentric to Buy UK's ITG for $215 Million
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Concentric Network Corp. has agreed to purchase the UK ISP Internet Technology Group plc (ITG) for $215 million.
The deal will give Concentric, a top provider of e-business services in the U.S., a foundation for expanding in the UK and Europe. ITG's revenue was $17.6 million in the year to October 1998, and $14.2 million in the six months to April 1999.
Concentric will pay for the acquisition in 50 per cent cash and 50 per cent Concentric stock. The acquisition is subject to ITG shareholder approval.
"This pivotal acquisition solidifies Concentric's ability to expand into the emerging global marketplace for Internet services," said Henry R. Nothhaft, chairman, president and CEO of Concentric Network.
ITG has an extensive network of 35 POPs in the UK, together with peering relationships with major European telecom providers and transatlantic connectivity. It is headquartered in London and has operations in the Netherlands.
Besides its Internet access and Web hosting services, ITG operates the FreeNetName service, which provides free domain name registration to business and consumer customers.