MFN Acquires Web Infrastructure Company in $1.36 Billion Deal

Oct. 10, 2000
In a transaction valued at approximately $1.36 billion, Metromedia Fiber Network Inc. (MFN) has acquired SiteSmith Inc., a provider of Internet infrastructure management services.

By Michael Sciannamea, Web Editor

In a transaction valued at approximately $1.36 billion, Metromedia Fiber Network Inc. (MFN) has acquired SiteSmith Inc., a provider of Internet infrastructure management services. The acquistion is expected to close by the end of the year and is subject to customary conditions.

According to MFN, the acquisition will help position the company as leading provider of managed optical Internet infrastructure solutions. MFN currently deploys optical IP Internet infrastructure within key metropolitan areas worldwide, and provides data centers and Internet connectivity through its subsidiary, AboveNet Communications. With this acquisition, MFN will provide its customers with a global end-to-end optical Internet infrastructure outsourcing solution. The combined company will offer its comprehensive managed services with its unmetered, unshared fiber network connections at the local loop, a globally connected fiber backbone network, Internet connectivity, and co-location data centers.

SiteSmith provides its customers with Internet infrastructure management solutions including design and architecture, hardware and software installation, co-location, and network connectivity, and ongoing management through provision of 24x7 monitoring, security services and fail-over systems.

Pursuant to the merger agreement, SiteSmith shareholders will receive 55 million to 62.5 million Metromedia shares. If the average closing price of Metromedia common stock for the 20 trading days ended four days prior to closing is greater than or equal to $27.27 a share, SiteSmith shareholders will receive 55 million shares.

If the average price is less than or equal to $24 a share, they will receive 62.5 million shares. If the average price is between $24 and $27.27, they will receive Metromedia shares equal to $1.5 billion.

Sponsored Recommendations

April 9, 2025
As transceiver speeds increase, so do thermal challenges. Discover key insights into innovative cooling solutions that ensure optimal performance and reliability.
April 10, 2025
The value of pluggable optics in open-line systems is also becoming more apparent. This webinar describes this trend and explores how such modules can best be employed. Register...
Sept. 30, 2024
Join us for an interactive roundtable webinar highlighting the results of an Endeavor Business Media survey to identify how optical technologies can support AI workflows by balancing...
April 11, 2025
Taking a comprehensive approach to developing electronic products is the key to successful outcomes.