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.
Ted Glenwright, Slip.Net’s president and chief executive officer, will
continue to oversee all of that company’s operations.
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.