Qwest to Compete in Euro Market With EUnet Acquisition
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Denver-based Qwest Communications International Inc. announced plans to enter the European market today with the acquisition of Amsterdam-based EUnet International for approximately $154 million in cash and stock.
Under terms of the agreement, EUnet shareholders will receive $135.5 million in newly issued shares of Qwest common stock, approximately $4.5 million in cash, and $14.4 million in cash or additional Qwest shares at Qwest's option.
EUnet International, a leading European Internet service provider with operations in 13 countries, reported 1997 revenues of around $55 million. The company said it expects 1998 revenues to reach $16 million in the first quarter and surpass $75 million for the entire year.
The ISP has business units in Austria, Belgium, Finland, France, Spain, Portugal, Norway, Sweden, Luxembourg, Czech Republic, Switzerland, Romania and Estonia, and serves approximately 60,000 business customers.
"The liberalization of the European telecommunications market and our recently acquired transatlantic capacity, combined with the EUnet acquisition, allow Qwest to provide business customers with high performance and cost effective end-to-end data and Internet services between North America and Europe."
Qwest also said it plans to fund EUnet's recent acquisition of a 50 percent interest in German Internet service provider X-Link.