BOSTON (03/22/2000) - Internet service provider PSINet Inc. today said it has signed a definitive agreement to acquire IT services provider Metamor Worldwide Inc. for approximately US$1.9 billion.
Texas-based Metamor has 4,500 employees in 70 offices and, in 1999, saw revenue of $577 million, according to a statement from PSINet. Metamor will be "integrated" into PSINet, which will strengthen PSINet's ability to provide turnkey outsourced services, which range from Web design to managed hosting, the statement said.
Under the terms of the agreement, each share of Metamor will be exchanged for 0.9 shares of PSINet common stock, according to the statement. The deal also gives PSINet a controlling interest in Metamor's e-business solutions subsidiary, Xpedior Inc., it said. PSINet will invest $50 million in Xpedior, it said.
The companies will host a conference call at 11:00 a.m. EST to discuss the deal. The call can be accessed by dialing +1-800-553-0272 from within the U.S.; the number for those outside the U.S. to call was not immediately available.
PSINet, in Herndon, Virginia, can be reached at +1-703-904-4100 or at http://www.psinet.com/.