The deal will enable Digiweb to provide high-speed broadband access throughout all of Europe, the company said in a statement. The ISP also revealed that it is evaluating further acquisitions in Europe.
Tiscali has a customer base of 400 satellite broadband customers, all of which will immediately migrate over to Digiweb that will also deal with any new Tiscali satellite broadband customers.
Digiweb is based in Dundalk, Ireland, and is a privately owned company that employs 55 full-time staff, with approximately 30 contractors at any given time. During 2004, revenue doubled to just under 2m euros ($2.4m). It expects revenue of between 7m euros ($8.5m) and 8m euros ($9.7m) for 2005.
Digiweb has approximately 10,000 customers, primarily located in Ireland, although it also services business customers in Germany, France, the UK, and Austria.
The disposal is the latest asset sale by Cagliari, Italy-based Tiscali. In April this year it sold its 95% stake in LibertySurf, the French internet service provider, to Telecom Italia for 266m euros ($342m).
Tiscali is Europe’s third largest ISP and was founded on the island of Sardinia. It was once regarded as a serious challenger to Telecom Italia but it is now struggling financially after a series of mistakes including an over-ambitious international expansion policy.
It is struggling to repay maturing bonds, specifically a 250m euros ($321m) loan due in July. Last year it raised 170m euros ($219m) by offloading businesses in Austria, Norway, Sweden, Switzerland, and South Africa, as well as by offering new stock.
