Continuing its expansion into the European Internet services market, British telecommunications company Cable & Wireless yesterday acquired ECRC Network Services for 27.5 million pounds ($US45.65 million) in cash.
In November, the company announced plans to build a $US1 billion Pan-European voice and data network that will allow it to offer Internet services in 40 cities in 13 countries. Today's acquisition of ECRC is another step toward rolling out Internet services across the continent, C&W said.
ECRC offers Internet access and services to corporate customers and Internet service providers (ISPs) in Germany, C&W said. Based in Munich, the company expects to generate revenues of 17 million pounds this year.
Germany is a key market for C&W, which says that the country is the largest Internet user of the Internet in Europe. As part of its plans to build the Pan-European network, C&W also opened offices in Dusseldorf and Frankfurt, the company said.
However, C&W also said the German acquisition will be integrated tightly with its European expansion plans, as well as its recent acquisition of MCI Communication's Internet business in the US.