Feeds

Claranet to buy VIA NET.WORKS

Lays down big depost

  • alert
  • submit to reddit

Boost IT visibility and business value

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

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.