FirstWorld Acquires Slip.Net
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FirstWorld Communications Inc. Thursday acquired Slip.Net, a San Francisco area Internet provider, for $10.45 million in cash plus 187,500 shares of First World stock.
The acquisition will give FirstWorld more than 20,000 business and consumer accounts that generated about $5.4 million in revenue in 1998. In addition, the company plans to enhance its current offerings by incorporating SlipNet's existing services, which include Web hosting, Digital Subscriber Line service, virtual private networks and Internet training.
Sheldon S. Ohringer, FirstWorld's president and chief executive officer, said the deal will allow the company to expand into Northern California and offer a range of services to Bay Area businesses.
"This acquisition will strengthen our position as an Internet and data-focused, integrated communications provider. This is the first acquisition of 1999 for FirstWorld and is key to our business strategy of providing high-speed access and comprehensive solutions to our business customers," he said.
Slip.Net has seven points of presence in the San Francisco area and one in New York. Slip.Net provides Internet service nationwide through contracts with other network providers.