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RCN Closes Acquisition of Interport Communications

RCN Corp. today said it completed its purchase of Interport Communications Inc., an independent New York City-based Internet service provider.

The acquisition, announced in early June, was valued at $11 million in RCN Common stock or $23.46 per share. The company also paid out $871,000 in cash.

RCN said the Interport buy brings with it 10,000 dial-up accounts and 500 dedicated line and Web hosting clients.

The company claims to be the largest ISP in the Northeast U.S. region through its earlier purchases of UltraNet Communications, Inc. and Erol's Internet, Inc.

RCN said it is New York City's sole bundled telecom services provider for residential customers. It reported an annual run-rate revenue of about $7 million per year.

"Interport is a solid company that has been able to thrive in an extremely competitive market," said RCN Chairman and CEO David C. McCourt, in a statement. "It will make an excellent addition to RCN's growing Internet business."