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Claranet Buys Via Net.Works for $27M.
2005-04-12, HostMan.biz Web hosting provider Via Net.Works (vianetworks.com) announced on Monday that it had signed a letter of intent to sell all its business operations to Web host Claranet (claranet.com) for approximately $27 million in cash. According to the agreement, Claranet acquires all of Via's European and US businesses, including PSINet Europe and the Amen Group – both acquired last year. Claranet purchased Via's UK operations last September. "Following our past acquisitions on the continent and last year's acquisition of VIA's UK operations, Claranet is consolidating its position as a leading European provider of communication services to business, adding to the group's future revenues and profits," says Charles Nasser, chief executive officer of Claranet. "We look forward to working with VIA's customers and staff and continuing to invest in our growth." The sale of Via comes just weeks after the company announced it was facing an urgent liquidity crisis and was actively looking for financing. According to research and analysis firm Netcraft (netcraft.com), the deal would expand Claranet's hosting operation significantly. The acquired Via assets are home to 175,000 hostnames, while Claranet is home to 54,000 hostnames. The combined total of 229,000 hostnames would make Claranet the sixth largest host in Europe, Netcraft says. Europe's hosting market has seen several acquisitions in the last year. Pipex bought Host Europe, NetBenefit added Easily and Freenet purchased Tect's hosting operation. The deal is subject to shareholder approval and other regulatory conditions. |
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