ATLANTA and VANCOUVER, Wash. -- Internet service provider EarthLink Inc. completed its acquisition of New Edge Networks, a privately owned provider of virtual private networks (VPNs).
The acquisition marks an expansion by the ISP into the fast-growing business network market, according to Bill Heys, president of EarthLink's value and small-to-medium enterprises business unit. We believe that New Edge Networks' nationalcoverage, proprietary systems and practical know-how are strongcompetitive advantages, Heys said.
New Edge executives [image-nocss] were also pleased with the move. New Edge Networks expects to expand its service offerings, step up its marketing and sales campaigns, expand its network and enhance backoffice systems, said Dan Moffat, president of New Edge Networks. We are excited about the growth prospects this merger represents.
Under the terms of the merger agreement, EarthLink has acquired 100% of New Edge Networks for 2.6 million shares of EarthLink common stock and $114.3 million in cash, including cash to be used to satisfy certain liabilities.
In other New Edge news, the company has developed what it calls an always-on narrowband Internet solution designed to speed up payment transactions at business locations where high-speed broadband access is not yet available or feasible.
The service eliminates the need for point-of-sale (POS) devices to call tollfree numbers for card authorizations.Because the connection is always on, New Edge officials said transactions and customer lines move faster.In addition, multiple POS terminals or cash registers can share the line, which allows retailers to cut down on phone charges for separate registers.
Most of the elapsed time in a credit card authorization is on initiating and establishing the connection to the payment processor; once the connection is established, the authorization can be completed at the wink of an eye, said Greg Griffiths, vice president of marketing for New Edge Networks. By shaving seconds off the total transaction time, many businesses like quick service restaurants and convenience stores with gasoline can increase sales, boost profit margins and improve overall customer experience.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.