A map of Tinet's global IP transit network.
(WEB HOST INDUSTRY REVIEW) — Interconnection services provider Neutral Tandem (www.neutraltandem.com) announced on Monday it has acquired Italian-based global carrier Tinet SpA (www.tinet.net) for about $99.8 million.
Neutral Tandem first announced it would acquire Tinet SpA last month. Tinet is now a wholly owned subsidiary of Neutral Tandem.
With this acquisition, Neutral Tandem expands its IP-based network internationally to offer the worldwide end-to-end delivery of wholesale voice, IP transit and Ethernet solutions.
Tinet has a network presence and customers in EMEA, Americas and APAC, where it provides global IP Transit and Ethernet connectivity to carriers, service and content providers worldwid.
Neutral Tandem paid the $99.8 million in cash, which also took into account certain purchase price adjustments, as well as the assumption of cash and repayment of long-term debt.
As part of the purchase price, Neutral Tandem assumed about $7 million and caused Tinet to pay off about $24.4 million in long-term debt.
“We believe that this deal will allow us to leverage our core competencies, expand our global footprint, accelerate our Ethernet initiatives and move beyond voice into data solutions,” says Rian Wren, president and CEO of Neutral Tandem. “We are pleased to have completed this acquisition and are excited to begin our efforts to capitalize on the new opportunities created by the transaction.”
Headquartered in Chicago, Neutral Tandem provides tandem interconnection services to wireless, wireline, cable and broadband telephony companies.
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