You may have seen this, then again you may not. In any case,
somewhat off-topic for NANOG (but unquestionably of interest),
please direct all speculation to com-priv.
Needless to say, both parties feel very good.
http://www.EU.net/cinfo/news/press980326qwest.html
QWEST ENTERS EUROPEAN DATA MARKET IN 13 COUNTRIES THROUGH ACQUISITION
OF EUNET INTERNATIONAL LTD
Denver - Amsterdam - March 26, 1998
Qwest Communications International Inc. today announced it has agreed
to acquire Amsterdam-based EUnet International in a cash and stock
transaction valued at approximately $154 million. EUnet is a leading
European Internet service provider (ISP) with business units operating
in 13 countries - Austria, Belgium, Finland, France, Spain, Portugal,
Norway, Sweden, Luxembourg, Czech Republic, Switzerland, Romania and
Estonia. EUnet had revenues in 1997 of approximately $55 million, and
1998 revenues are expected to reach $16 million in the first quarter
and over $75 million for the entire year. EUnet has over 400 employees
and serves approximately 60,000, primarily business, customers
throughout Europe. In addition, Qwest will fund EUnet's recent
acquisition of a 50 percent interest in X-Link, a leading German
Internet service provider.
The board of directors of each company has approved the acquisition and
the requisite number of EUnet shareholders have agreed to the
transaction. EUnet shareholders will receive approximately $135.5
million in newly issued shares of Qwest common stock, approximately
$4.5 million in cash, and approximately $14.4 million in cash or
additional Qwest shares at Qwest's option. The acquisition will be
accounted for as a purchase. The closing is subject to the satisfaction
of certain customary conditions, including the receipt of applicable
securities law approval. The parties expect to consummate the
acquisition within 30 days.
"The European data market is exploding to an estimated $55 billion by
the year 2000. The Internet is the driving force behind this trend,"
said Joseph P. Nacchio, president and CEO at Qwest. "EUnet has
extensive Internet expertise and an understanding of Europe's diverse
national markets and regulatory issues. The liberalization of the
European telecommunications market and our recently acquired
transatlantic capacity, combined with the EUnet acquisition, allow
Qwest to provide business customers with high performance and cost
effective end-to-end data and Internet services between North America
and Europe."
"EUnet recognizes that the future of Internet usage rides on the
ability to move large amounts of data and images quickly and without
error. Partnering with Qwest allows the two companies to capitalize on
their expertise in IP data networking products and to leverage the
superior Qwest network infrastructure to deliver a leading edge
American-European data strategy," said Jim Omand, chairman of the board
at EUnet International.
"Joining Qwest will allow us to further expand our presence in Europe
and to continue to deliver to our customers the data network services
that have made EUnet a market leader."
The Qwest shares will be issued in a private placement exempt from
registration under the Securities Act of 1933. Qwest has agreed to
register the shares for resale under the Securities Act within three
weeks after the closing of the previously announced merger between
Qwest and LCI International, Inc. or by September 30, 1998, if earlier
(or under certain circumstances as late as October 31, 1998).
The Qwest Macro CapacitySM Fiber Network
Qwest's planned domestic 16,250 mile network will serve more than 125
cities, which represent approximately 80 percent of the data and voice
traffic originating in the United States, upon its scheduled completion
in the second quarter of 1999. Currently, nearly 3,750 miles are
activated from Los Angeles to Cleveland; and from Dallas to Houston.
Qwest is also extending its network 1,400 miles into Mexico with
completion slated for late third quarter 1998.
The Qwest Macro Capacity Fiber network is designed with a highly
reliable and secure bi-directional, line switching OC-192 SONET ring
architecture. Upon completion, the network will offer a self-healing
system that provides the ultimate security and reliability by allowing
instantaneous rerouting in the event of a fiber cut.
About EUnet
Established in 1982 and the first European provider of Internet
services for business use, EUnet was instrumental in creating Europe's
Internet infrastructure. Today, EUnet International provides, via
subsidiaries, affiliated companies and business partners, one-stop
shopping for corporate Internet access in Europe with a network
spanning over 42 countries and more than 400 PoPs (Points of Presence).
Via its transit-free backbone, EUnet International offers the business
community a wide range of turnkey solutions from full-service,
centrally-managed connectivity and Intranets to mobile access,
Webcasting, Web Storefront and Electronic Commerce solutions. For more
information, please visit EUnet's website at www.EU.net.
About Qwest
Qwest Communications International Inc. (NASDAQ:QWST) is a multimedia
communications company building a high-capacity, fiber optic network
for the 21st century. With its cutting-edge technology, Qwest will
deliver high-quality data, video and voice connectivity securely and
reliably to businesses, consumers and other communications service
providers. Further information is available at www.qwest.net.