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Easynet Buys Dutch Broadband ISP

Posted: 16th Mar, 2004 By: MarkJ
UK ISP and networking group Easynet has purchased Novaxess Beheer BV, a Dutch local loop (LLU) broadband supplier, for the sum of £26.2m:

Novaxess will bolster Easynet's existing business in the Netherlands and help it on the path to profitability. Easynet expects to save £1m (€1.5m) a year on consolidating infrastructure and estimates one-off integration costs at €1m.

Novaxess has some 4,500 business customers and employs around 125 staff. It has unbundled 84 exchanges in the Netherlands, covering most of the country's key business districts. In 2003, it generated revenues of £15.1m (€22.1m), and made a pre-tax profit of £100,000 (€200,000).

Easynet chief exec David Rowe said the acquisition has "four key benefits for the company: it significantly enhances our Dutch business, moving it to cash flow positive; it extends our business class pan-European product set through the use of the local loop; it improves Group EBITDA and it accelerates our progress towards cash flow positive.In addition, Novaxess has developed a Voice over IP solution for businesses, which advances our plans in that area."


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