Energis Plc has bought a majority stake in a Berlin, Germany-based internet service provider for the business community as part of a drive to strengthen its customer base in continental Europe. The London, UK-based carrier is paying 14.1m DM ($7.3m) for a 74.9% holding in BusinessOnline, which offers virtual ISP services, leased line connectivity, intranets, web hosting and security and gateway services.
BusinessOnline had revenue of $1.6m in the 10 months through October 31 and an EBITDA loss of $1.4m but Energis says the company is experiencing rapid growth and the acquisition price reflects BusinessOnline’s revenue estimates for calendar year 2000.
Energis has been rapidly building out a European network and last month announced plans for six internet data centers, with the first two – in Frankfurt and Amsterdam – planning to go live by spring of next year.
