PSINet Inc got back to us to explain that its acquisition of Canadian internet service provider Interlog Internet Services Inc last week did not mean a move away from its core strategy of being predominantly a commercial – as opposed to a consumer – service provider. It says that whereas in its home market, PSINet does concentrate on web hosting and providing IP backbone service to companies and other service providers, outside the US the situation is different and it while it is not likely to buy a consumer ISP in the US, it may do so again abroad. Interlog is said to be the second largest consumer ISP in Canada and PSINet says it makes it is the largest commercial ISP not affiliated with a telecommunications carrier. It adds that Interlog also brings with it web design expertise that could be of us to all of PSINet’s customers. Interlog is said to be operating profitably at a run rate of about $10m annually and PSINet’s Canadian arm will own 100% of the stock once the deal has been completed.
