The company that purchased Internet service provider Netcom in 1997 said Monday it will sell off another portion of the beleaguered company.
MetroNet, a high-speed access provider from Calgary, Alberta, will buy controlling interest in Netcom Canada, one of the country's five largest ISPs, from parent company ICG Communications.
The companies said in a statement they expected the deal to close in the first quarter of 1999. Terms were not disclosed, but the firms said the sale will consist of a combination of cash and stock.
MetroNet is attempting to build a coast-to-coast IP backbone in Canada, and recently acquired parts of a long-haul fiber network between several large Canadian metropolitan areas. That network is approximately 50 percent completed. The company said it expects to finish the job by the end of the year.
Netcom Canada connects approximately 40 points of presence in more than 40 cities across the country. The ISP has 135 employees and annualized revenues of more than C$20 million (US$13.3 million). Monday's sale includes all of Netcom Canada's nationwide infrastructure, customers, and employees.
In early January, ICG sold off 400,000 individual Netcom user accounts to Mindspring.
