PSINet, Inc. confirmed it has acquired Hong Kong Internet and Gateway Services (HKIGS), the territory’s oldest commercial ISP.
This latest deal comes just a few weeks after PSINet picked up 100% of Hong Kong’s second largest ISP, Linkage Online, for US$20 million. No financial details were disclosed about the Hong Kong Internet deal which was announced Friday, September 11.
PSINet Hong Kong chief Mr.Chin Man confirmed that “we signed the deal . . . and we have made financial offers to all the employees.” Man declined to comment on further details of the acquisition, which is just the latest in a string of aggressive moves in the Asian market by the U.S. data carrier.
PSINet’s first acquisition in Asia was in Japan, and Chin Man said “that the company has already started talks with a company in China for another possible buy out very soon.” It is clear that the company is on a shopping spree in the recession-hit Asian region.
According to industry insiders these recent moves on Asian ISPs by U.S. corporations is a sign of things to come in the region. The ISP market is becoming highly competitive and several Asian ISPs hit hard by the economic crisis are lacking the cash to sustain their operations.
“Asia is still a very new market for Internet businesses, so it is good challenge for the U.S.,” said Loh Wai-yew, general manager of HugeNet, another Hong Kong-based ISP. “The U.S. players are now seeing the potential in Asia and that it is not expensive to buy someone out.”
IT Daily reported recently that PSINet is in talks with HugeNet for a possible merger.
