ISP and web hosting company PSINet has announced plans to acquire business software and services supplier Metamor Worldwide in a stock-swap deal worth $1.9bn (£1.2bn).
Metamor supplies software implementation and integration, applications development and outsourcing services. The company consists of enterprise, European, global and industry solutions groups, plus Xpedior, its publicly traded ecommerce software subsidiary.
PSINet said the combined company will offer customers web outsourcing services, web and applications hosting, and web design and strategy. The deal is expected to be completed by the middle of this year.
William Schrader, PSINet chairman and chief executive, said: "The acquisition furthers our plans to move into the applications outsourcing arena and enables us to offer our customers everything they need to do business on the web."
William Klein, an analyst at Wasserstein Perella Securities, said the deal will propel PSINet in a new level, particularly as an application service provider.
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