PSINet to sell European business for $9.5m

Internet services firm PSINet has announced it plans to sell its European operations to a consortium of investors for $9.5m...

Internet services firm PSINet has announced it plans to sell its European operations to a consortium of investors for $9.5m (£6.5m) in cash.

The group of buyers is led by a British financier and includes data centre operator ClearBlue Technologies and investment companies Israel and Infinity Holdings. Conditions for the sale, which include approval by regulators and a US Bankruptcy Court, should be met by 28 June, PSINet said.

PSINet Europe employs about 600 people and had sales of about $160m (£110m) in 2001. The company offers a host of Internet-related services such as access, Web hosting and collocation in the UK, France, Germany and other European countries. The buyers plan to invest in PSINet Europe to develop and expand the business, PSINet said.

PSINet of Ashburn, Virginia, filed for Chapter 11 bankruptcy protection in June last year. The company has been selling off its businesses since then. The operations in Canada, Hong Kong, Japan and the US are now owned by others, while the Australian operations remain, a PSINet spokeswoman said.

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