Independent ISP Claranet Ltd is paying 7.3m pounds ($13.3m) in cash for the UK operations of Via Net.Works Inc, which is currently transforming itself from an ISP into a company offering hosting, security, and other managed operations.
Under terms of the deal, Claranet will pay 5.3m pounds ($9.6m) up front, and a further 2m pounds (43.6m) will be held in escrow with half to be paid in six months and the other half in a year.
Charles Nasser, CEO of London, UK-based Claranet, said the company is consolidating its position as the leading non-telecommunications ISP for business.
Via’s CEO Rhett Williams said the deal will allow it to focus on its core operations in continental Europe and the US.
Loss-making Via has a $39.2m stock market value, considerably less than the $42.3m cash reserves it recorded at the end of June, suggesting that the market attaches no value to its core business.