[RCN Acquires NYC's Largest Independent Internet Service Provider]
Separately, RCN's Internet Subsidiary Voted "Most Reliable" ISP in National Report
PRINCETON, N.J., June 1, /PRNewswire/ -- RCN Corporation, announced today that it has signed a definitive agreement to acquire New York City's largest independent Internet service provider, Interport Communications Inc., for $11 million in RCN stock and $871,000 in cash. Separately, the company reported that its Erol's Internet subsidiary and IBM were found to be the country's "most reliable" ISPs in a recent national survey conducted by Inverse Network Technology of Sunnyvale, Calif.
IBM and Erol's topped a list of 23 companies as the most reliable ISPs in the first three months of 1998, according to the report by Inverse Network Technology. The study gauged reliability by the likelihood of Internet users being connected on their first call.
"When we look to acquire Internet providers, we look for quality companies with quality people," said David C. McCourt, Chairman and CEO. "We found both qualities in our previous acquisitions in Washington and Boston, and followed this pattern with Interport in New York City. This is an excellent company with a dedication to customer service that has allowed it to thrive in one of the most competitive Internet markets in the country."
The acquisition of Interport Communications brings RCN more than 10,000 dial-up accounts and 500 dedicated line and web hosting customers, further establishing the company as the Northeast's largest regional ISP and New York City's only provider of bundled telecommunications services to residential customers. Interport has an annual run rate revenue of approximately $7 million per year.
Earlier this year, RCN became the Northeast's largest ISP through the purchase of UltraNet Communications, Inc. and Erol's Internet, Inc., Boston and Washington's largest ISPs. |
