PRIMUS Telecommunications Acquires an Internet
Service Provider in Canada.
PRIMUS Telecommunications Group, Incorporated
(Nasdaq:PRTL)(PRIMUS), a global telecommunications service
provider offering an integrated portfolio of voice, Internet,
voice over Internet protocol (VOIP), data and hosting services,
announced today that PRIMUS Telecommunications Canada, Inc.
(PRIMUS Canada), its wholly owned subsidiary in Canada, acquired
Magma Communications Ltd (Magma), a leading provider of Internet
solutions to corporate, government and residential customers in
Toronto, Ottawa and Montreal. Magma's product offerings include
Web hosting, server co-location and managed services (system
administration and security), and Internet access. PRIMUS Canada
will acquire 100% of the issued stock of Magma for a total
consideration of approximately C$16 million, half of which will
be payable from available cash and the balance in shares of
Common Stock of PRIMUS.
The acquisition adds approximately 30,000
customers to PRIMUS Canada's existing Internet customer base of
over 70,000 and significantly expands its network and operations
in Ottawa where Magma operates a 7,000 square foot Data Center.
"We believe Magma provides an excellent infrastructure to
enhance our existing Internet and Data Center business,
particularly to government and corporate accounts," said Ted
Chislett, President and Chief Operating Officer of PRIMUS
Canada.
Founded in 1995, Magma has earned a reputation
for providing quality customer service, winning the Consumers
Choice Award for Internet Service Providers in Ottawa seven
years in a row. Magma has also experienced consistent revenue
growth with a five-year average annual growth rate of over 30%.
K. Paul Singh, Chairman and Chief Executive of
PRIMUS, stated: "We have previously articulated the essential
criteria we have established for acquisitions - they have to add
scale in our existing major markets, they should be focused on
growing our retail customer base, and they need to be accretive
to our operating profitably and cash flow. The Magma acquisition
meets all of those measures, as well as broadening our service
offerings and targeted customers. In addition, Magma's customer
base presents opportunities for bundling our VOIP and voice
products."
PRIMUS Telecommunications Group, Incorporated
(NASDAQ:PRTL) is a global telecommunications services provider
offering bundled voice, data, Internet, digital subscriber line
(DSL), VOIP, Web hosting, enhanced virtual private network (VPN)
applications, and other value-added services. PRIMUS owns and
operates an extensive global backbone network of owned and
leased transmission facilities, including VOIP connections to
over 150 countries and over 550 points-of-presence (POPs)
throughout the world, ownership interests in over 23 undersea
fiber optic cable systems, 18 international gateway and domestic
switches, and a variety of operating relationships that allow it
to deliver traffic worldwide. PRIMUS also has deployed a global
state-of-the-art broadband fiber optic ATM+IP network and data
centers to offer customer Internet, data, hosting and e-commerce
services. Founded in 1994 and based in McLean, VA, PRIMUS serves
corporate, small- and medium-sized businesses, residential and
data, ISP and telecommunication carrier customers primarily
located in the North America, Europe and Asia Pacific regions of
the world.
