Genuity to acquire European hosting company
The company, a provider of Internet services, plans to acquire Integra in a stock deal valued at $105.8 million.
Genuity, which offers a variety of Internet services from broadband access to Web hosting, is hoping to speed its expansion into Europe via the Integra merger.
The company's announcement comes less than two weeks after Genuity said it would cut costs again, as orders have fallen from its corporate customers and the economy has weakened.
The acquisition "will eliminate the need for Genuity to build out additional European data centers, thereby significantly reducing capital costs," Paul Gudonis, Genuity chief executive said in a statement.
Under the deal, Integra will merge into Genuity's European operations, which will be called Genuity Europe.
The transaction calls for Integra shareholders to receive 75 percent of a Genuity share for every Integra share they hold. The companies note the deal will represent a 14 percent premium for Integra shareholders.