Digital services operator Magnet Networks has agreed to acquire Ireland’s third largest internet service provider (ISP) Netsource, subject to approval from the Competition Authority.
Netsource is Ireland’s only dedicated business-to-business ISP and specialises in the teleworker, SME and corporate sectors. Its services include internet access services (broadband, ISDN, leased line and dial-up), managed e-mail, hosting and security services (anti-virus and anti-spam) and data backup services.
Kenneth Peterson Jr, executive chairman of Magnet Networks said the takeover would position Magnet as a “pre-eminent service provider” of broadband, voice and data services to the Irish business community.
Netsource’s core customer base exceeds 4,000 corporate and SME clients, including Ernst and Young, Allianz Worldwide Care, Boyne Valley Foods, Alphyra and Dublin Port, which will now migrate to Magnet Network’s unbundled local loop network. A total of €65mn is being invested in this network over the next two years, Magnet has said.
Peterson said the combination of Netsource’s established customer base with Magnet Networks’ technology would accelerate the potential return on the investment in its network.
Magnet said the deal complements the purchase of Leap Broadband in May 2005 by Magnet Networks’ parent company, Columbia Ventures Corporation.
The entire Netsource workforce will join the expanded Magnet operation, including its founder Tom Kelly who will take up the role of director of market development for Magnet Networks.
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