EarthLink Acquires Cybergate's Dial-Up Customer Base

e.spire will focus on webhosting.

By the dc.internet.com staff
[October 10, 2000]

Internet service provider EarthLink, Inc. (NASDASQ:ELNK) is acquiring the dial-up customer base and the domain name gate.net from Cybergate, Inc., an Internet subsidiary of e.spire Communications, Inc. (NASDAQ:ESPI). All of the Cybergate employees will be retained by EarthLink. The terms of the contract were not disclosed.

"The sale of our ISP business is a first step toward realizing our strategy to streamline our Internet offerings by focusing our resources on ValueWeb's rapidly growing and in-demand Web hosting, colocation, and managed services," said George F. Schmitt, e.spire chairman and acting chief executive officer (CEO). "The proceeds will be used to pay down our bank debt and to invest in ValueWeb assets." Follow the gold
The Herndon, Va.-based e.spire Communications is an integrated communications provider, offering traditional local and long distance phone service, dedicated Internet access, and advanced data solutions, such as ATM and frame relay.

The company also provides Web hosting, dedicated server, and colocation services through CyberGate and its subsidiary ValueWeb.

In addition, e.spire's subsidiary ACSI Network Technologies, Inc. provides third parties, including other communications concerns, municipalities, and corporations, with turnkey fiber optic design, construction, and project management expertise.

"CyberGate has built a significant ISP business, and we are pleased that our subscribers will enjoy the benefits of the world's second largest and one of the most respected ISPs," Tomas V. Mikaelsson, CyberGate president and chief operating officer.

EarthLink is the nation's second-largest ISP. With headquarters in Atlanta, the company provides a full range of access, hosting and e-commerce solutions to thousands of communities internationally from more than 5,000 points of presence.

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