RealTime IT News

Hermes Europe Buys Into Ebone for 90 Million ECU

Hermes Europe Railtel (HER), a subsidiary of Global TeleSystems Group (GTS), acquired a majority interest in Ebone A/S, one of the largest Internet backbone providers in Europe, for 90 million ECU.

As part of the transaction, Ebone will gain long-term capacity rights on the HER network.

Ebone is a Tier-1 Internet backbone provider based in Copenhagen, Denmark. It serves over 90 customers (Internet Service Providers) in 22 countries. Following the acquisition, Jan Loeber, GTS's senior vice president, HER, will be elected Ebone board chairman. Frode Greisen remains managing director.

The balance of Ebone's shares will continue to be owned by many of Ebone's existing customers, via an association. It is expected that members of the association will have the right to buy additional shares in a future issuance before the end of the year, reducing HER's stake from its current 75% to not less than 54%.

GTS is an independent telecommunications operator headquartered in the metropolitan Washington, DC area of the United States, with offices in London, Moscow, Budapest, Brussels, Paris, Monte Carlo, Prague, and Kiev.