PSINet Acquires Australian ISP Zircon Systems|
HERNDON, Va. (Reuters) - Commercial Internet access provider PSINet Inc (Nasdaq:PSIX - news). said Monday it acquired closely held Australian Internet service provider Zircon Systems Pty Ltd., marking its first move into the world's eighth largest telecommunications market.
Terms of the deal were not disclosed.
Herndon, Va.-based PSINet said the acquisition is part of its strategy to become a market leader in the 20 largest telecommunications markets in the world.
PSINet shares were off 15/16 at 35 on Nasdaq.
Earlier this month, PSINet reaffirmed plans to build more than 21 Web hosting centers worldwide by the end of 2000, and more than 60 over time. Over the past year, the company has made more than 20 small overseas acquisitions.
''Australia is a critical market for PSINet, and is an important link to the Asian Pacific region, an increasingly important transit route,'' said Harold Willis, PSINet president.
PSINet estimated about 4 million retail Internet users in Australia, with about 50 percent of homes owning a personal computer, though not all have Internet access.
Closely-held Zircon Systems serves about 3,500 businesses and individual consumers with dedicated and dial-up services, as well as Web hosting services, with customers in Brisbane, Melbourne, Adelaide and Perth.
Once integrated, Zircon's customers will have access to PSINet's dial-up and dedicated connection services. Electronic commerce, global roaming, intranet, Internet faxing, and security services, will eventually be offered.