Telstra Acquires UK Operations of PSINet Europe

LONDON - Telstra Europe Limited (Telstra) announced the acquisition of the UK businesses of PSINet Europe. PSINet UK was previously controlled by the Israel Corporation Limited.

This is Telstra's third UK acquisition in nine months. Previous acquisitions include Powergen's telecoms network infrastructure (October 2003) and Cable Telecom (February 2004).

The acquisition of PSINet positions Telstra to meet growing demand for converged voice and data services. PSINet UK's access solutions, hosting services, and its disaster recovery and storage products complement Telstra's voice and international data solutions. It means Telstra can now introduce a range of new products that add value for its customers. The acquisition of PSINet UK also includes a 10,000 m2 hosting and data centre and UK network operation centre, based in London, Docklands.

Telstra currently offers voice and data services to 5,000 corporate customers in the UK and provides on-the-ground support for many Australian-multinationals. Customers include De Beers, Hilton, Macquarie Bank and Westpac. PSINet UK supports in excess of 3,200 corporate and government customers including GMTV and the City of Sunderland.

PSINet has been serving customers for over 14 years in the UK and was acquired by Israel Corporation Limited in 2002. Since 2002 PSINet operations in the UK have undergone restructuring and rationalization.

Under the terms of the deal Telstra has disclosed to the Australian Stock Exchange (ASX) that it will pay a total consideration of GB£50 Million in cash for the UK businesses of PSINet Europe.