Metrocall Inc. Thursday announced
plans to raise more than $51 million from three major investors.
The money will be used in part to expand wireless, high-speed Internet access.
PSINet Inc., Hicks, Muse, Tate & Furst
Inc., and an unnamed third party are each investing $17 million. As a result of the transaction, each
entity owns about 10 percent of Metrocall (MCLL), having acquired 7.8 million shares of stock.
William L. Collins, III, Metrocall president and chief executive officer,
said the major investors validate its wireless services offering and the
future of business communications.
“These three major investments are an endorsement of our long range
strategy in the wireless data and messaging industry as well as a powerful
recognition of the value of our 6 million mobile wireless messaging
subscribers,” Collins said.
Harold S. Wills, PSINet (PSIX)
president and chief operating officer, said the Metrocall investment is a large part of PSINet’s global wireless strategy.
“The Metrocall relationship is a key component of our strategy to expand
PSINet’s products and reach into the rapidly growing population of wireless
data users worldwide,” Wills said.
Michael J. Levitt, Hicks, Muse partner, said the investment reflects
confidence in the long-term potential of wireless data and messaging services.
“Going forward, we believe that Metrocall is positioned as the premier
participant in its market with the strategic, operational and financial
resources to capitalize on its significant growth potential,” Levitt said.
Metrocall and its trio of major investors also agreed to establish a joint
venture to produce a suite of communication services for small office and
home office customers. The service offering includes broadband
Internet access, paging, two-way wireless data solutions and e-mail hosting.
