INM sells internet arm to Digiweb
Telecoms firm Digiweb has announced the acquisition of Internet Ireland from Independent News & Media (INM), just a month after buying Smart Telecom out of examinership.
The value of the transaction has not been disclosed. A hosting and telecoms solutions company, Internet Ireland has been in business for the past 15 years. It was founded Barry Breslin and Michael Branagan, the original founder of Indigo, and acquired by INM in 2000.
No purchase price was revealed at the time, but INM did announce that it would invest €15.2 million in the company.
As a subsidiary of INM, Internet Ireland did not file separate accounts to the parent company and no indication was provided of its current level of revenues. Aside from web hosting, Internet Ireland specialises in data centre co-location, e-mail solutions, broadband and leased lines.
Digiweb said that staff at internet Ireland will be moving to its offices and data centre in Blanchardstown over the coming weeks. Digiweb plans to cross sell its own services such as fibre and wireless broadband to Internet Ireland customers.
The move is the second significant piece of M&A activity undertaken by Digiweb in recent months, after it earlier acquired Smart Telecom from examinership. Digiweb managed to get Smart’s lenders to agree to write a significant proportion of its debt off, reducing it from €87 million to €14 million with no repayments due for another three years and no interest payable in the interim.
Digiweb chief executive Colm Piercy estimated that the Smart deal would initially give the company annualised revenues of €40 million, with the prospect for further growth once the two businesses are fully integrated.
Founded in 1997,the company’s chief shareholders are Piercy himself and Moritz Holdings, which is owned by property developer Mick Whelan. Digiweb now has 150 employees, with offices in Dublin, Dundalk and Water ford.
Piercy said that the firm now has 46,000 business, residential and government customers for broadband and telephony services and another 48,000 web hosting, domain and data centre customers.
