Denver-based Qwest
Communications International Inc. announced plans to enter the European
market today with the acquisition of Amsterdam-based EUnet International for approximately $154
million in cash and stock.
Under terms of the agreement, EUnet shareholders will receive $135.5
million in newly issued shares of Qwest common stock, approximately $4.5
million
in cash, and $14.4 million in cash or additional Qwest shares at Qwest’s
option.
EUnet International, a leading European Internet service provider with
operations in 13 countries, reported 1997 revenues of around $55 million.
The company said it expects 1998 revenues to reach $16 million in the first
quarter and surpass $75 million for the entire year.
The ISP has business units in Austria, Belgium, Finland, France, Spain,
Portugal, Norway, Sweden, Luxembourg, Czech Republic, Switzerland, Romania
and Estonia, and serves approximately 60,000 business customers.
“EUnet has extensive Internet expertise and an understanding of Europe’s
diverse national markets and regulatory issues,” said Joseph P. Nacchio,
president and CEO at Qwest.
“The liberalization of the European telecommunications market and our
recently acquired transatlantic capacity, combined with the EUnet
acquisition, allow Qwest to provide business customers with high
performance and cost effective end-to-end data and Internet services
between North America and Europe.”
Qwest also said it plans to fund EUnet’s recent acquisition of a 50
percent interest in German Internet service provider X-Link.
