Earthlink Thursday finalized its deal to buy New Edge Networks for $144 million.
Earthlink is using 2.6 million shares and $114.3 million in cash to acquire New Edge, which provides managed VPN and Internet access services for business customers and service providers.
The companies originally announced their plans in December.
Privately held New Edge operates a national data network that runs over an ATM core with 850 carrier class switches, the service provider says. The company also offers DSL, private line, frame relay, ATM and IP services.
New Edge key investors include Goldman, Sachs & Co., Crosspoint Venture Partners and Greylock.
Customers include Duane Reade, a drug store chain in metropolitan New York with 250 sites, Sbarro Italian restaurant chain with 400 sites and Metromedia Restaurant Group, which includes Ponderosa and Steak and Ale eateries with 315 sites.
The deal provides Earthlink, which has primarily been focused on providing Internet access services for consumers, with a base of small and midsize business customers and services geared toward these users.
New Edge is expected to operate as a subsidiary of Earthlink and will retain its name and 365 employees.
