Qwest Communications Acquires Germany's Second-largest Business Internet Provider for $26 Million in Cash
Agreement Boosts Qwest's Expansion Globally with Internet Protocol-Based Services, Reach To 80 Percent of World's Web Users
DENVER--(BUSINESS WIRE)--Feb. 8, 1999-- Qwest Communications International Inc. today announced it has completed the acquisition of Xlink Internet Service GmbH, a leading Internet service provider headquartered in Karlsruhe, Germany, for about $12.7 million in cash. Qwest purchased the other 50 percent of Xlink in March, 1998, for $13.3 million when it acquired European Internet service provider EUnet International Ltd.
A recent study of the German Internet market ranked Xlink as the country's second-largest provider of services to business and institutional customers. The agreement further expands the company's presence in Western Europe and coupled with its other Internet interests, Qwest has access to more than 80 percent of the world's Internet users.
''With European Internet usage expected to grow more than 70 percent by the year 2000, a tremendous opportunity exists for Qwest to strengthen its position as a global provider of IP-based and multimedia communications services,'' said Joseph P. Nacchio, Qwest president and CEO.
Qwest plans to fold the remaining half of the Xlink business into its EUnet organization, which will be a core part of a joint venture being formed with KPN, the Dutch telecommunications company. The venture, expected to be launched by the end of March, will build and operate a high-capacity European fiber optic, Internet Protocol-based network spanning 9,100 miles.
The Qwest Macro Capacity Fiber Network has the first OC-48 Internet Protocol-based network with tremendous bandwidth that enables the convergence of voice, data and video communications.
In recent months, Qwest has made other acquisitions and formed alliances to aggressively expand its Internet-centered initiatives. These activities include the acquisition of ICON CMT at the end of last year to leverage Qwest bandwidth while providing end-to-end, high-value enterprise solutions for large customers; an alliance with Microsoft to create advanced business applications for the NT operating system; and an alliance with Netscape to provide advanced communications services to the Netscape Netcenter portal to the Internet.
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