Acquisition Positions FirstWorld as Regional ISP
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Regional Internet solutions provider FirstWorld Communications Inc. Tuesday continued its expansion with the acquisition of the fourth-largest ISP in the San Francisco Bay area.
FirstWorld will purchase all of the outstanding capital stock of Sirius Solutions for approximately $7.5 million in addition to 285,000 shares of FirstWorld Communications Inc. Class B common stock.
The purchase of Sirius represents FirstWorld's second acquisition in the Bay area in less than two months.
FirstWorld acquired Slip.Net Inc. in the first week of January this year. Purchasing Slip.Net's 20,000 customer base solidly positioned the company as a regional player in the business-intensive Northern California Internet market. FirstWorld is based in Colorado and currently offers Internet services in Northern California, Oregon and Washington.
With the purchase of Sirius completed, FirstWorld will have a combined customer base of more than 35,000 users, including more than 28,000 dial-up subscribers.
"FirstWorld Communications is focused on becoming a dominant player in the Internet industry and we are pleased that with the acquisition of Sirius, we are able to further establish the company as one of Northern California's top ISPs," said Sheldon S. Ohringer, First World Communications president and chief executive officer.
"Through our merger with FirstWorld, the new combined company becomes a powerful player in the San Francisco Bay area, able to offer a broad array of Internet and telephony services to businesses and consumers," said Andreas Glocker, Sirius Connections president and chief executive officer.
"We are excited about the opportunity to leverage our proven Internet expertise and are dedicated to helping establish FirstWorld as a leader in this dynamic industry," said Glocker.
Glocker will continue to oversee all operations for Sirius Connections.