PRIMUS Telecommunications Group, Incorporated
(PRIMUS), a global telecommunications service provider offering an integrated
portfolio of voice, Internet, voice over Internet protocol (VOIP), data and
hosting services, announced today that PRIMUS Telecommunications Canada, Inc.
(PRIMUS Canada), its wholly owned subsidiary in Canada, acquired Magma
Communications Ltd (Magma), a leading provider of Internet solutions to
corporate, government and residential customers in Toronto, Ottawa and Montreal.
Magma’s product offerings include Web hosting, server co-location and managed
services (system administration and security), and Internet access. PRIMUS
Canada will acquire 100% of the issued stock of Magma for a total consideration
of approximately C$16 million, half of which will be payable from available cash
and the balance in shares of Common Stock of PRIMUS.
The acquisition adds approximately 30,000 customers to PRIMUS Canada’s existing
Internet customer base of over 70,000 and significantly expands its network and
operations in Ottawa where Magma operates a 7,000 square foot Data Center.
“We believe Magma provides an excellent infrastructure to enhance our
existing Internet and Data Center business, particularly to government and
corporate accounts,” said Ted Chislett, President and Chief Operating
Officer of PRIMUS Canada.
Founded in 1995, Magma has earned a reputation for providing quality customer
service, winning the Consumers Choice Award for Internet Service Providers in
Ottawa seven years in a row. Magma has also experienced consistent revenue
growth with a five-year average annual growth rate of over 30%.
K. Paul Singh, Chairman and Chief Executive of PRIMUS, stated: “We have
previously articulated the essential criteria we have established for
acquisitions – they have to add scale in our existing major markets, they should
be focused on growing our retail customer base, and they need to be accretive to
our operating profitably and cash flow. The Magma acquisition meets all of those
measures, as well as broadening our service offerings and targeted customers. In
addition, Magma’s customer base presents opportunities for bundling our VOIP and
About PRIMUS Telecommunications Group
PRIMUS Telecommunications Group, Incorporated is a global telecommunications
services provider offering bundled voice, data, Internet, digital subscriber
line (DSL), VOIP, Web hosting, enhanced virtual private network (VPN)
applications, and other value-added services. PRIMUS owns and operates an
extensive global backbone network of owned and leased transmission facilities,
including VOIP connections to over 150 countries and over 550 points-of-presence
(POPs) throughout the world, ownership interests in over 23 undersea fiber optic
cable systems, 18 international gateway and domestic switches, and a variety of
operating relationships that allow it to deliver traffic worldwide. PRIMUS also
has deployed a global state-of-the-art broadband fiber optic ATM+IP network and
data centers to offer customer Internet, data, hosting and e-commerce services.
Founded in 1994 and based in McLean, VA, PRIMUS serves corporate, small- and
medium-sized businesses, residential and data, ISP and telecommunication carrier
customers primarily located in the North America, Europe and Asia Pacific
regions of the world. News and information are available at PRIMUS’s Web site at
About PRIMUS Telecommunications Canada, Inc.
PRIMUS Telecommunications Canada, Inc. is the largest alternative communications
carrier in Canada with approximately 900,000 retail customers. The Company
offers facilities-based voice, data, e-commerce, Web hosting and Internet
services. As a leading Internet service provider in Canada, PRIMUS Canada has
approximately 100,000 Internet subscribers served by a national network of
Internet points-of-presence (POPs) for dedicated and dial-up access. PRIMUS
Canada also offers local services to businesses, bundling them with its long
distance and Internet services. The Company has a fully redundant and diverse
SONET network across Canada, extending from Quebec City to Victoria. PRIMUS
Canada’s national network consists of Nortel DMS 500 switches with international
connectivity through its parent company’s global network, and ATM and IP nodes
at major cities across the country. These network elements provide an integrated
and converged backbone for all of PRIMUS Canada’s voice, data, Internet and
private line services. PRIMUS Canada is a wholly-owned subsidiary of McLean,
Virginia-based PRIMUS Telecommunications Group, Incorporated (Nasdaq:PRTL).
PRIMUS Canada news and information are available at the Company’s Web site at
PRIMUS Telecommunications Group, Incorporated, McLean
John DePodesta, 703-902-2800