TELUS Corp. has signed an agreement to purchase the Canadian operations of Internet services provider PSINet.
The deal, worth $77 million US, follows up on a letter of intent between the two companies earlier this month.
Under the terms of the agreement, TELUS will offer employment to at least 95 per cent of PSINet’s Canadian-based employees, who provide Internet access, Web hosting, security and e-commerce application services to the Canadian business and ISP markets.
The Virginia-based company announced it was filing for bankruptcy protection several weeks ago. With 275 employees, PSINet serves most major markets including Edmonton and Calgary, as well as Ottawa, Toronto and Montreal.
PSINet Canada also delivers consumer and small business Internet services through its wholly owned subsidiary, Calgary-based CADVision.
The purchase is subject to a number of conditions, including regulatory approval and approval under bankruptcy proceedings, including the Companies’ Creditors Arrangement Act in Canada. A decision is expected by the end of July.
