Digital networking company IXC Communications Inc has completed its previously-announced deal with PSINet Inc, providing it with the use of 10,000 miles of OC-48 fiber optic capacity in exchange for 10.3 million shares of PSINet stock. The shares represent a 20% stake in the internet service provider and are worth about $240m. The final agreement will also see IXC chairman Ralph Swett join PSINet’s board and the two companies market each other’s products and services, as well as an integrated telecom and internet services package. PSINet opted for the relationship with IXC instead of accepting a recent unsolicited takeover proposal from holding company USInternetworking (CI No 3,332).
