PSINet to sell European business for $9.5 million

Internet services firm PSINet Inc. plans to sell its European operations to a consortium of investors for US$9.5 million in cash, the company said Friday.

The group of buyers is led by a British financier and includes data center operator ClearBlue Technologies Inc. and investment companies Israel Corp. and Infinity Holdings. Conditions for the sale, which include approval by regulators and a U.S. Bankruptcy Court, should be met by June 28, PSINet said.

PSINet Europe employs about 600 people and had sales of about $160 million in 2001. The company offers a host of Internet-related services such as access, Web hosting and collocation in the U.K., France, Germany and other European countries. The buyers plan to invest in PSINet Europe to develop and expand the business, PSINet said.

PSINet of Ashburn, Virginia, filed for Chapter 11 bankruptcy protection in June last year. The company has been selling off its businesses since then. The operations in Canada, Hong Kong, Japan and the U.S. are now owned by others, while the Australian operations remain, a PSINet spokeswoman said.

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