Internet service provider PSINet Inc. has signed a definitive agreement to buy Transaction Network, a provider of data communications and electronic commerce services. PSINet said it would buy the processor of sales over the Web for a $720 million cash-and-stock deal.
Transaction Network runs a network used by U.S. credit card processors that has reportedly experienced rapid growth this year. The acquisition is expected to add immediately to PSINet's earnings.
According to PSINet chairman and chief executive William Schrader, the deal "enables PSINet to better access the $1 trillion marketplace for e-commerce services."