PSINet Expands Internationally with Acquisition in Panama

Computergram International, August 17, 1999

Internet service provider PSINet Inc said Monday it has reached a deal to acquire privately-held Sinfonet, which it claims is the largest ISP in Panama. Financial terms of the deal were not disclosed. The Herndon, Virginia-based company says the acquisition is its 15th international purchase this year and now gives it a significant presence in 19 countries. Sinfonet is said to serve more than 15,000 businesses and consumers in Panama's top municipalities, with a market share of more than 50%. The deal is expected to be accretive to PSINet's earnings before interest, tax depreciation and amortization.

In a related announcement, PSINet said it has created a new internal business division, the Mexico and Central America Region, and named Antonio Rihan as its general manager. Rihan founded Datanet SA de CV of Mexico which was acquired in May by PSINet after roughly five years in business. PSINet says it plans to expand significantly throughout Central America and will offer its full range of products and services there.