Court approves sale of PSINet Europe

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ITworld.com –

Internet services firm PSINet Inc. has won approval from a U.S. bankruptcy court to sell its European operations for US$9.5 million in cash, the company said Tuesday.

The group of buyers includes data center operator ClearBlue Technologies Inc. and investor Israel Corp. The buyers plan to create a "one-stop shop" for Internet services such as hosting and collocation through further acquisitions and partnerships, PSINet said in a statement.

The sale, subject to regulatory approval, is expected to close before June 28, and includes use of the PSINet brand name in Europe, staff, customer base and all assets, a person familiar with the deal said.

PSINet Europe BV is active in 12 countries, employs about 600 people and had sales of about $160 million in 2001.

PSINet of Ashburn, Virginia, filed for Chapter 11 bankruptcy protection in June 2001. The company has been selling off its businesses since then. U.S. network and customer assets were sold earlier this year to Cogent Communications Inc., a metropolitan Ethernet service provider.

Operations in Canada, Hong Kong, Japan were sold earlier. The Australian operations remain, PSINet has said.

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