In an attempt to boost its sales in the European market, New
York-based internet company Register.com has successfully bid to
buy out Virtual Internet, a British web-hosting company and the
main competitor to Register.com.
Over 50% of Virtual Internet's investors have agreed to the
sale, seeing it as an opportunity to expand into an international
market otherwise unavailable without the contacts and resources to
be provided by Register.com.
The buy out offer has increased Virtual Internet’s share price
dramatically. This is encouraging news for the company and its
investors, particularly after the recent announcement that the
company’s losses before tax for the year 2001 had increased by over
£10 million.
Register.com, a provider of web hosting services to businesses
and a seller of internet domain names, also reported heavy losses
last year - $28.8 million for the period commencing June to
September 2001 alone. A full report of the company’s profits is
expected to be published on 11 February. Its acquisition of Virtual
Internet is part of a long-term strategy to increase its European
market share.
It is rumoured that Register.com’s offer is in the region of £12
million, however further details are expected later this month once
the deal has been finalised.
