Making it the third major telecommunications company to acquire an internet service provider since the beginning of the year, ICG Communications Inc is to acquire Netcom Online Communication Services Inc. ICG is one of the US’ largest independent local exchange carriers with an extensive fiber optic network, and just last month bought all the outstanding stock of the Communications Buying Group (CI No 3,243). The company says together with Netcom it will be able to offer a full-service business communications company with a single source for the complete range of voice, data, internet, web hosting and other communications services. The deal will be structured as a tax-free merger transaction between Netcom and an ICG subsidiary. Based on second quarter results, the new combined company expects to have annual revenues of more than $420m.
