PSINet Enters Argentine Internet Market; Acquires Buenos Aires-Based Argentina On-Line
Business Wire - July 12, 1999 08:19
HERNDON, Va.--(BUSINESS WIRE)--July 12, 1999--PSINet Inc. (NASDAQ: PSIX), the first and largest independent facilities based commercial Internet service provider (ISP), today announced the acquisition of Argentina On-Line, headquartered in Buenos Aires. The company, founded in 1995, is one of the largest privately held ISPs in Argentina. The purchase follows PSINet's earlier acquisitions in Latin America of three ISPs in Brazil and two in Mexico, and furthers the company's plan for a significant presence in the top twenty telecommunications markets globally.
Argentina On-Line serves both businesses and consumers with dedicated and dial-up connectivity as well as Web hosting and e-commerce capabilities. Once integrated within PSINet's global operations, Argentina On-Line 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, bringing additional capabilities and benefits to customers throughout Argentina.
"Internet usage in Argentina is poised for rapid growth. Recent studies show the number of Spanish-speaking people online worldwide is expected to double in 1999, from 14 million users to 34 million by the end of the year. This is an opportune time for us to lay a strong foundation in this important market," said Philippe Kuperman, president of PSINet Latin America. "With upcoming state telephone deregulation expected in November 1999, Internet usage will likely grow exponentially as related costs decline. We intend to bring our full suite of Internet products and services to the Argentine market."
Argentina On-Line services the sixty most important cities in the country with sales offices in Buenos Aires, La Plata and Bahia Blanca. The company provides Internet services to a number of multinational corporations including Ford Motor Company, Benneton, McGraw-Hill, Fiat, Marriott, Autodesk, top media companies and telecommunication carriers as well as more than 20 embassies and several government agencies.
Terms of the agreement were not disclosed. Argentina On-Line is 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 Argentina, 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 by calling toll-free 1-800-799-0676.
CONTACT: PSINet Inc., Herndon
Media Contact:
Reid Walker
(703) 375-1103
rwalker@psi.com
or
PSINet Inc., Herndon
Analyst Contact:
Kelli Harrington Nemer
(703) 375-1245
harringtonk@psi.com
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