Global telecommunications group Cable and Wireless plc has agreed, through its subsidiary, Cable & Wireless IDC, to acquire Tokyo-based PSINet Japan Inc. from PSINet Inc.
Cable & Wireless and PSINet have signed a Share Purchase Agreement to acquire the entire issued share capital of PSINet Japan for approximately ٥.2 million.
PSINet Japan provides Internet Protocol connectivity and web hosting services for enterprise customers in Japan. The company has points of presence within key Japanese cities and a data center in Tokyo, and it provides services to several thousands of business customers.
The acquisition is intended to reinforce Cable & Wireless' position in Japan's growing internet market and accelerate the delivery of Cable & Wireless' strategy to provide IP and data services to business customers in Japan. PSINet Japan's revenue in the first half year 2001 was £28 million and the acquisition is expected to more than double Cable & Wireless's IP revenue within Japan.
PSINet Inc (PSINet Japan's US parent) is currently subject to US "Chapter 11" bankruptcy proceedings and, as is customary in these situations, the Share Purchase Agreement provides for a court supervised auction process at which other qualified bidders will be entitled to bid for PSINet Japan . The Share Purchase Agreement also provides that, subject to court approval, Cable & Wireless will be entitled to a break-up fee and certain expenses if another party outbids Cable & Wireless in the auction and that party proceeds to completion.
Completion of the transaction is subject to customary closing conditions. At completion the shares in PSINet Japan will be registered in the name of Cable & Wireless IDC.
Under the terms of the Share Purchase Agreement, Cable & Wireless may terminate the Agreement if the transaction is not completed by 28 February 2002.
For more information about Cable & Wireless (Vienna, VA), visit the company's Web site at www.cw.com.