The company did not disclose financial terms of the acquisition, which is expected to close in August.
PSINet is continuing its efforts to expand globally. Only a few weeks ago, the company announced plans to expand its presence in Canada with the acquisition of Interlog Internet Services. PSINet also has been aggressively acquiring network facilities, operations, and market share in North America, Europe, and elsewhere in the Asia/Pacific region.
PSINet currently has subsidiaries in Belgium, Canada, France, Germany, Hong Kong, Italy, Japan, the Republic of Korea, the Netherlands, Switzerland, the United States, and the United Kingdom.
The acquisition of Rimnet is expected to be accretive to PSINet's profitability and will add more than $10 million in annualized revenues to PSINet's worldwide business. This purchase strengthens PSINet's position in Japan, which is the second largest economy worldwide and No. 2 among the top 20 telecommunications markets.
Rimnet offers domestic and international Internet telephony, international Internet faxing, and a variety of application development services. The company and its customers will have immediate access to PSINet's full portfolio of dial-up and dedicated Internet connectivity services. Rimnet will also have access to PSINet's electronic commerce and security services, Web hosting and multimedia, global roaming for remote access, and intranet and extranet services.