RealTime IT News

Rocky Mountain Internet Buys Fellow Colorado Firm

Internet services provider Rocky Mountain Internet (RMI) announced today it will buy Greenwood Village, CO-based Internet Communications Corp. for a approximately $38 million.

RMI said all outstanding shares and options convertible into shares of Internet Communications' common stock will be acquired for between $6.65 and $6.80 per share.

After the purchase transaction is completed, RMI said it will begin conducting business under the Internet Communications Corp. name.

Internet Communications' data center, 26 field offices, and 180 employees will also be acquired as part of the deal. RMI said in a statement that it does not expect any "significant reduction in personnel."

Gross revenues generated by Internet Communications' for year end 1997 were $36.1 million, according to RMI, which made $6.1 million for the same period.

"Internet Communications has become a significant regional network services provider with the ability to develop integrated network solutions in both voice and data environments," said Douglas H. Hanson, president and CEO of Rocky Mountain Internet.

"Their technical expertise, strong customer base and nationwide reputation will propel our company into the ranks of the nation's most significant players offering complete communications solutions. The synergy of the two companies will also enable us to gain significant economies of scale as we reduce overhead as a percentage of revenue."