RealTime IT News

PSINet Spends $46M on ISPs

In a move aimed at expanding the company's presence in top telecommunications markets worldwide, PSINet Inc. announced today the purchase of four Internet solutions and service providers in Hong Kong, Germany, France and the United States for approximately $46 million in cash.

PSINet said the companies--LinkAge Online Limited in Hong Kong, Interactive Networx GmbH in Germany, SCII-CalvaPro in France, and ioNET Internetworking Services in Oklahoma--generate annual revenue of over $23 million.

With the acquisitions, PSINet said it is building a stronger presence in Germany and Hong Kong, the world's 3rd and 19th largest telecom markets respectively.

The four companies also bring PSINet an additional 3,500 new business customers, more than 20,000 new small/home office and dialup customers, and a revenue mix the company said will be comprised of 70% Internet access and 30% value-added services.

"These acquisitions accelerate our entry into key world markets, build revenue and customer traffic on our network, and contribute to earnings before interest, taxes, depreciation and amortization (EBITDA)," said Edward D. Postal, PSINet senior vice president and chief financial officer.

PSINet also holds subsidiaries in Canada, Japan, Belgium, Italy, the Netherlands, Switzerland, Africa and the UK.

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