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Telecoms operator Zipcom plc has acquired UK-based HighwayOne for £900,000, the company confirmed today.

It's not known if there are any job losses associated with the acquisition.

Zipcom is a broadband provider for SMEs and uses fixed wireless access and DSL to offer hi-speed Net services in areas outside of major cities.

By targeting less keenly contested regions Zipcom reckons it can cash in on providing broadband services in areas that have been ignored by its "less agile competitors".

Grahame Purvis, Zipcom's chairman and CE said: "Acquiring HighwayOne means that we can significantly accelerate our strategy to become a leading player in the broadband market throughout the UK."

Zipcom floated on the Alternative Investment Market (AIM) last year raising £14 million. At the end of December 2000 it had £10.1 million in the bank.

In March in released its preliminary results announcing a pretax loss of £2.62 million compared to £145,000 in the previous year. ®

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