Telstra Corp Ltd., the Australian telecoms incumbent, has announced plans to purchase PSINet UK, an internet service provider, for AUD 127 ($90).
The telco has made a string of recent acquisitions including the purchase of Sydney-based Kaz Group for AUD 333 million ($254.5 million) as part of its strategy to diversify its business and grow revenue.
Managing Director of Telstra’s Business & Government Group, David Thodey, said: Just as Telstra’s recent acquisition of the Kaz Group expanded Telstra’s ICT services capability, this acquisition enables Telstra to provide similar services to customers operating between our region and the UK.
Last year PSINet UK made sales of approximately $58 million, with earnings before interest, taxes, depreciation and amortization of $14 million. The company has 100 staff based in London and Cambridge, managing services to 3,200 business customers.
Earlier this month, Via Net.Works Inc. announced a deal to acquire the continental Europe operations of PSINet Europe BV in a deal worth 18 million euros ($22.1 million).
Like the UK operations, PSINet Europe was an independent subsidiary of PSINet Inc., a global ISP which once had a valuation of $2 billion before the dot com bubble burst and it went bankrupt.