Highlights from the story in the WSJ-IE follow. This is a subscriber only link, so it is not provided.
Qwest to Buy Internet Provider
EUnet of Europe for $150 Million
By JOHN J. KELLER
Staff Reporter of THE WALL STREET JOURNAL
Qwest Communications International Inc., continuing its asset expansion, agreed to buy European Internet-access provider EUnet International Ltd. in a stock and cash transaction valued at slightly more than $150 million.
.......Qwest aims to become a specialist in providing high-speed data and phone services, using the powerful Internet-protocol technologies of fiber-optics, packet data transmission and computerized routers, to companies and consumers. The company's acquisitions of the past few months should accelerate its business plan by several years, executives said. LCI brings Qwest a large base of small-business accounts, residential customers, a network and systems for running a large enterprise.
Other recent acquisitions include Colorado Supernet, an Internet-access company based in Denver, and Phoenix Network Systems, a reseller of long-distance services, both of which bring crucial customers and facilities.
........EUnet's revenue has been growing rapidly. Last year, the company posted $55 million in revenue, and this year, executives expect the company's sales to top $75 million. The company has 350 employees. In addition to its core business, EUnet owns 50% of X-Link, one of the fastest-growing Internet providers in Germany.
The European play is crucial for Qwest. Next to the U.S., it is the biggest market, with $32 billion in data-transmission revenue, growing to $55 million within two years, according to analysts.
Executives said EUnet's management and employees are expected to remain with the company, including Chairman James Omand, who will lead EUnet after the acquisition. Qwest is run by Chief Executive Officer Joseph Nacchio, former president of consumer services at AT&T Corp.
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Regards, Judy |
