Feeds

Claranet to buy VIA NET.WORKS

Lays down big depost

  • alert
  • submit to reddit

Internet Security Threat Report 2014

VIA NET.WORKS, Inc. - the business-focused telco in Europe and the US which recently said it was facing an "urgent liquidity problem" - has agreed to be rescued by UK ISP Claranet for $27m.

Yesterday both companies said they had signed a letter of intent for Claranet to snaffle up VIA NET.WORKS. Although it is still early days, Claranet has coughed up a $3m deposit for exclusive negotiation rights with VIA until 30 April.

Should the deal get all the necessary rubber stamps, it would mean that Claranet would snap up all of VIA NET.WORKS's European and US businesses, including PSINet Europe's operations and the Amen Group.

Three weeks ago VIA NET.WORKS called in PricewaterhouseCoopers to help it secure new financing to address what it described as an "urgent liquidity problem". Netherlands-based VIA NET.WORKS had given itself until the end of March to either find new investment or flog all or part of the business.

Commenting on the launch of the Claranet lifeboat VIA's chief exec Ray Walsh said: "We have undertaken an intensive process these past several weeks working in parallel with a number of potential strategic partners to negotiate the best transaction for our shareholders. We also believe that Claranet's offer will provide the best value for our employees, customers, creditors and other constituencies."

If all goes to plan the deal should secure shareholder approval within the next two or three months.

Of course, VIA and Claranet have history. In September last year Claranet snapped up the UK operation of VIA for $13.2m prompting Claranet boss Charles Nasser to explain that the ISP is "consolidating its position" as a European provider of communication services to business while "adding to the group's future revenues and profits". ®

Related stories

VIA NET.WORKS faces liquidity crisis
Claranet buys VIA NET.WORKS UK
The Great ISP Buyout

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.