Looking to expand its holdings in the online marketplace, ISP PSINet Inc. is buying Transaction Network Services Inc. (TNI) for US$720 million, it was announced today.
The deal includes $351 million in cash and up to 7.8 million PSINet common shares, PSINet said.
TNI is an e-commerce data processing firm, handling about 20 million transactions per day from 2 million businesses worldwide over the Internet, according to the company.
The acquisition of TNI marks the first time such a large e-commerce company has merged with an internationally based ISP (Internet Service Provider), William L. Schrader, PSINet chairman and chief executive officer, said in a statement released by the company.
PSINet has been aggressively moving into the e-commerce arena, most recently in Brazil this past June [See, "PSINet Bets on E-Commerce in Brazil," June 11] when the company announced plans to buy fiber-optic networks and to establish data centers in the country.
TNI operates in Ireland, the U.K., Sweden, France, Australia and Japan. According to PSINet's statement, the deal will allow TNI to expand its international reach operating over PSINet's global backbone, which consists of over 600 POPs around the world serving Argentina, Austria, Belgium, Brazil, Canada, France, Germany, Hong Kong, Italy, Japan, Luxembourg, Mexico, the Netherlands, Panama, Republic of Korea, Spain, Switzerland, the U.S. and the U.K.
The acquisition is subject to TNI shareholder approval and regulatory approvals, and is expected to close in the fourth quarter of 1999.
PSINet, located in Herndon Virginia, can be contacted at +1-703-904-4100 or at http://www.psinet.com/.Transaction Network Service, Inc TNI, located in Reston, Virginia, can be contacted at +1-703-453-8300, or at http://www.tnsi.com.