The whole story:
RCN Corporation Acquires Unique Way to Sell Internet Services to The Educational Community
Purchase of Springfield, MA-Based JavaNet For $15.8 Million In Cash And Stock Brings Northeast's Largest Regional ISP 30,000 New Internet Accounts
July 16, 1998 08:49 AM
PRINCET0N, N.J., July 16 /PRNewswire/ -- RCN Corporation RCNC , announced today that it has signed a definitive agreement to acquire one of New England's largest Internet service providers, Springfield, MA-based JavaNet, for $13.4 million in RCN Stock and $2.4 million in cash. The acquisition of JavaNet brings RCN, the Northeast's largest regional ISP, approximately 30,000 new dial-up customers, 400 dedicated line and web hosting accounts and significant entry into the region's educational community.
"JavaNet is a unique company that fits several of RCN's criteria for Internet acquisitions. They have established a unique place in this exciting and ever-changing medium, as well as superior record of customer service and strong management," said RCN Chairman David C. McCourt. "JavaNet has been extremely successful in finding ways to bring the power of the Internet into the educational community, an initiative that has value on many levels, and one we plan to continue."
JavaNet is one of New England's fastest growing ISPs and has an annual run rate revenue of approximately $7 million. In addition to providing excellent service to its growing list of customers, the company has focused on expanding the reach of the Internet through associations with public school systems and institutions of higher education throughout its base of operations in the Northeast.
In February, JavaNet announced an agreement with the Commonwealth of Massachusetts' Department of Education to create MassEd.Net, a program which provides up to 80,000 Internet accounts to Massachusetts K-12 educators. Earlier this month, JavaNet signed an agreement with the Connecticut Higher Education Consortium to provide up to 400,000 Internet accounts to Connecticut students, faculty and alumni.
"We were impressed by JavaNet's ability to take care of its growing customer base, while also identifying new and effective ways of getting the power of the Internet into the hands of those most able to pass it onto a new generation -- our educators," McCourt said. "With its significant subscriber base, talented employees and practical Internet expertise, we expect JavaNet to make an excellent addition to RCN's growing Internet business."
Over the past six months, RCN has acquired the largest regional ISPs in Boston, Washington and New York. Through these acquisitions, and strong internal growth, the company has become the Northeast's largest regional ISP.
RCN's Internet subsidiary recently topped a list of 23 national and regional ISPs rated for reliability over the first three months of 1998 in a study conducted by Inverse Network Technology of Sunnyvale, Calif.
RCN Corporation RCNC is the nation's first and largest single- source, facilities-based provider of telecommunications services to the residential market, and the largest regional Internet service provider (ISP) in the Northeast. The company is currently providing local and long-distance phone, cable television and Internet access to several markets from Boston to Washington, D.C. The company also recently announced plans to expand its target market to include California's San Francisco to San Diego corridor.
SOURCE RCN Corporation |
