Internet broadband services company SoftNet Systems this week announced that it has partnered with Compaq and CMGI to jointly form a new company that will provide business travelers with broadband mobile Internet and computer services.
The three partners have made a joint initial investment of $100 million in the new company, which is named SoftNet Zone and will be based in San Francisco, SoftNet says.
Nokia and Cisco also have signed on to provide the new company with equipment, support and services, SoftNet says.
As part of the joint venture, SoftNet has agreed to buy LaptopLane Ltd. for one million shares of SoftNet stock and the assumption of LaptopLane debt of about $3.5 million, SoftNet says. LaptopLane provides mobile computing and communications services in 12 U.S. airports, including Chicago O'Hare International Airport and Denver International Airport.
SoftNet will pass ownership of LaptopLane to SoftNet Zone as part of its contribution to the joint venture, SoftNet says.
SoftNet did not disclose details of the financial terms of the agreement. According to a Wall Street Journal report, however, Compaq and CMGI will contribute $60 million in cash to the venture, with SoftNet providing $40 million worth of assets and resources, including LaptopLane.
Compaq and CMGI will be minority shareholders in SoftNet Zone, which will provide wired and wireless mobile computer and Internet services through its airport locations, SoftNet says.
SoftNet can be reached at 415-365-2500, or at www.softnet.com/. Compaq can be reached at 281-370-0670, or at www.compaq.com/. CMGI can be reached at 978-684-3600, or at www.cmgi.co. Nokia can be reached at 58-91-8071, or at www.nokia.com/. Cisco can be reached at 408-526-4000, or at www.cisco.com/. LaptopLane can be reached at www.laptoplane.com/.
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