Telstra Buys PSINet Europe's UK Operations

Telstra Europe acquires the UK operations of PSINet Europe for £50M in cash

August 25, 2004

1 Min Read

LONDON -- Telstra Europe Limited (Telstra), a wholly-owned subsidiary of Telstra Corporation, today announced the acquisition of the UK businesses of PSINet Europe, a leading provider of e-business infrastructure solutions and corporate IP based communication services to large and medium sized companies. PSINet UK was previously controlled by the Israel Corporation Limited (TASE: ILCO).

This is Telstra's third UK acquisition in nine months, and clearly demonstrates Telstra's commitment to the UK market and its corporate customer base. Previous acquisitions include Powergen's telecoms network infrastructure (Oct '03) and Cable Telecom, a leading provider of telecom services to small and medium business customers (Feb '04).

The acquisition of PSINet positions Telstra perfectly to meet growing demand for converged voice and data services. PSINet UK's access solutions, hosting services, and its disaster recovery & storage products complement Telstra'stop- class voice and international data solutions. It means Telstra can now introduce a complementary range of new products that add genuine value for its customers. The acquisition of PSINet UK also includes a 10,000 m2 hosting and data centre and UK network operation centre, based in London, Docklands.

Under the terms of the deal Telstra has disclosed to the Australian Stock Exchange (ASX) that it will pay a total consideration of GB£50 Million in cash for the UK businesses of PSINet Europe.

Telstra Corp.

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