Release Dates: Immediate
Ed Hansen, MindSpring Enterprises, Inc.
MindSpring Purchases Netcom Subscribers and other Assets from ICG Communications, Inc.
ATLANTA (January 6, 1999) -- MindSpring Enterprises, Inc. (Nasdaq:MSPG) today announced a definitive agreement with ICG Communications, Inc.(Nasdaq:ICGX) to purchase the Netcom customer base of approximately 400,000 individual Internet access accounts, 3,000 dedicated Internet access accounts, and 18,000 web hosting accounts in the United States. MindSpring will pay ICG Communications approximately $245 million, including $215 million in cash and $30 million in MindSpring stock.
The sale also encompasses various assets used in serving those subscribers, including leased operations facilities in San Jose, Calif. and Dallas. MindSpring also acquires all U.S. rights held by ICG Communications to the " Netcom " name, as well as select software and equipment. ICG Communications will retain the network assets and sell MindSpring wholesale access to the network under a separate network services agreement. The Netcom operations in Canada and the United Kingdom are not included in this transaction.
"This acquisition is consistent with our mission to become a major player in the telecommunications industry of the future," said Charles M. Brewer, chairman and CEO of MindSpring Enterprises. "We believe Netcom's assets and employees will enable MindSpring to expand the scope and depth of top-notch service that we currently provide to our customers. We look forward to a long-term networking relationship with ICG."
"We believe this acquisition, when completed, will put MindSpring over the 1 million dial-up subscriber mark," continued Brewer. "Not only have we demonstrated the ability to drive organic growth and successfully manage acquisitions, but we have done it profitably since the fourth quarter of 1997."
"This sale and the related network services agreement with MindSpring is consistent with our business plan to focus on our core telecommunications operations, and expand our customer base by building stronger relationships with Internet service providers," said J. Shelby Bryan, ICG Communications' president and chief executive officer. "We are confident that MindSpring will continue to provide our Netcom subscribers with affordable and quality service."
The Company expects the transaction to be completed later this quarter, subject to certain customary closing conditions and regulatory approvals.
MindSpring is a leading Internet service provider focused on delivering
outstanding service and support to its customers. MindSpring's dial-up
subscribers can browse the World Wide Web, send electronic mail,
participate in informative online chats and access over 20,000 newsgroups.
MindSpring offers local Internet service in more than 375 locations
throughout the United States. MindSpring is also a leading provider of Web
Hosting services and domain registrations.
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