The deal calls for Verio to pay $101 million in cash and $250 in stock at an agreed-upon price, a spokesman said. The companies expect the deal to close in the fourth quarter of 1998. Hiway will get one seat on Verio's board.
"The combination creates the largest and fastest-growing domain-based Web hosting company with more than 150,000 Web sites," the companies said in a statement. Verio provides Internet connectivity, Web hosting, and other Internet services.
Hiway had $9.7 million in revenue and $1.4 million of operating income for this year's second quarter. The combined companies expect to gain a savings of about $5 million per year phasing in through the second half of 1999 as a result of shared infrastructure. Hiway recently merged with Best Internet Communications.
Verio stock was up 2.125 to 28.5 in midmorning trading, nearing a 52-week high. The shares have traded as high as 31.875 and as low as 16.5 in the past 52 weeks.