(COMTEX) B: PSINet Acquires Leading Internet Service Provider in Puer
B: PSINet Acquires Leading Internet Service Provider in Puerto Rico
HERNDON, Va., Jun 22, 1999 (BUSINESS WIRE via COMTEX) --
Company Also Announces Acquisition of U.S. Northeast Regional ISP
PSINet Inc. (NASDAQ: PSIX), the first and largest independent
facilities based commercial Internet service provider (ISP), today
announced the acquisition of privately held Caribbean Internet, based
in San Juan, Puerto Rico. With the acquisition, PSINet becomes Puerto
Rico's second largest ISP. This is PSINet's first acquisition in the
Caribbean region.
Caribbean Internet serves approximately 14,000 businesses and consumers
with dedicated and dial-up connectivity as well as Web hosting
capabilities. Once integrated, Caribbean Internet customers will have
access to PSINet's full portfolio of dial-up and dedicated connectivity
services. All of PSINet's value-added services will then be added,
including electronic commerce, Web hosting, global roaming, intranet,
Internet faxing, voice-over-IP and security services.
Caribbean Internet serves approximately 30% of Internet users in Puerto
Rico. The population of Puerto Rico is currently estimated at 3.8
million with approximately 32.3% of the population residing in the San
Juan Metropolitan area. According to recent studies, approximately 13%
of homes in Puerto Rico now have personal computers though not all of
these have Internet access.
"Puerto Rico has a strong economy and is showing tremendous growth
potential. As part of the United States it is an important component of
our domestic network, " said John F. Kraft, president of PSINet's U.S.
Northeast region. "When we began exploring this market, Caribbean
Internet stood out from other local ISP's because of its
state-of-the-art technology network and seasoned management team.
Unlike many other ISP's in the region, it is dedicated solely to
Internet access services."
"PSINet's global network, combined with the technology and customer
service expertise of Caribbean Internet will serve this market well,"
said Carlo Marazzi, president of Caribbean Internet. "We intend to grow
significantly throughout Puerto Rico."
PSINet also announced the acquisition of The Internet Access Company
(TIAC), a regional ISP serving the greater Boston and Eastern
Massachusetts region. TIAC is one of the ten largest providers of
direct Internet service to both organizations and individuals in the
U.S.
TIAC, which is privately held, serves approximately 33,000 U.S.
businesses and consumers with dedicated and dial-up connectivity as
well as web hosting capabilities. Offerings include tiered T1, frame
relay and ISDN service from over 50 points of presence (POPs)
throughout Massachusetts, New Hampshire, Connecticut, Rhode Island, New
York and New Jersey.
"The acquisition of TIAC builds upon PSINet's existing customer and
revenue base while further strengthening U.S. regional and national
market share," said Kraft. "While a majority of our recent acquisitions
have occurred outside the U.S., additional domestic purchases are
planned consistent with our ongoing strategy to achieve and reinforce
premier positioning in the world's top 20 markets."
Terms of both acquisitions were not disclosed. Both companies are
expected to be accretive to PSINet's EBITDA (earnings before interest,
tax depreciation and amortization).
Headquartered in Herndon, VA, PSINet is a global facilities-based
Internet Protocol (IP) data communications carrier focused on the
business marketplace. As the first and largest independent commercial
Internet service provider in the world, PSINet offers a broad set of
high-speed corporate LAN connectivity services supporting managed
security and guaranteed Internet, Intranet, electronic commerce, Web
hosting services, and services for other carriers and ISPs. PSINet
operates an international state-of-the-art frame relay and ATM-based,
IP-optimized network consisting of over 535 POPs around the world
serving primary markets in Belgium, Brazil, Canada, France, Germany,
Hong Kong, Italy, Japan, Luxembourg, Mexico, the Netherlands, Republic
of Korea, Switzerland, the United States, and the United Kingdom.
PSINet information can be obtained by e-mail at info@psi.com, by
accessing the Web site at psinet.com or bycalling toll-free
1-800-799-0676.
Copyright (C) 1999 Business Wire. All rights reserved.
-0-
CONTACT: PSINet, Inc.
Media Contact:
Reid Walker
703/375-1103
rwalker@psi.com
or
Analyst Contact:
Kelli Harrington Nemer
703/375-1245
harringtonk@psi.com
WEB PAGE: businesswire.com
GEOGRAPHY: VIRGINIA INTERNATIONAL LATIN AMERICA
INDUSTRY CODE: COMPUTERS/ELECTRONICS
COMED
TELECOMMUNICATIONS
INTERACTIVE/MULTIMEDIA/INTERNET
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