PSINet to buy Transaction Network for $US720M

Looking to expand its holdings in the online marketplace, ISP PSINet is buying Transaction Network Services Inc (TNI) for $US720 million, it was announced yesterday.

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 company, handling about 20 million transactions per day from two 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 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 when the company announced plans to buy fibre-optic networks and to establish data centres in the country.

TNI operates in Ireland, the UK, 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 more than 600 points of presence 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 US and the UK.

The acquisition is subject to TNI shareholder approval and regulatory approvals, and is expected to close in the fourth quarter of 1999.

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