Jan, 2002 : C&W Completes Acquisition of PSINet Japan

📅 January 28, 2002 - Cable and Wireless plc (cw.com), a global telecommunicationsgroup, has announced that it has, through its subsidiary Cable & WirelessIDC, completed the acquisition of PSINet Japan, Inc. from PSINet Inc.(psi.net) for US$16.6 million (approximately 11.5 million pounds).

The increase in the purchase price originally announced on Dec.10, 2001results from Cable & Wireless bidding against another party at the courtsupervised auction which forms part of the sale process under Chapter 11 ofthe US Bankruptcy Code.
PSINet Japan provides IP connectivity and Web hosting services forenterprise customers in Japan. The company has points of presence within keyJapanese cities, a data centre in Tokyo and provides services to severalthousands of business customers.
The acquisition is intended to reinforce Cable & Wireless' position inJapan's growing Internet market and accelerate the delivery of Cable &Wireless' strategy to provide IP and data services to business customers inJapan.
PSINet Japan's unaudited revenue in the first half year 2001 was 28 millionpounds, generating positive EBITDA (under US GAAP) of 3.4 million in thesame period, and the acquisition is expected to more than double Cable &Wireless's IP revenue within Japan.
Commenting on the announcement, Simon Cunningham, president and CEO Cable &Wireless IDC, said, "This acquisition highlights our commitment to theJapanese market and clearly fits our strategy to grow our IP business withinJapan. We will realise cost synergies through sharing a much largerinfrastructure, whilst our continued commitment to quality will bringbenefit to a much broader customer base."