Interoute Gets Cash from Tecom

Interoute Communications Ltd., the privately held owner and operator of the i-21 voice and data network in Europe, has signed a partnership agreement with Tecom, a United Arab Emirates telecom operator and member of Dubai Holding.

Under the contract, Dubai Holding (Tecom) has taken a stake in Interoute, in exchange for an equity investment totaling more than $142 million. Interoute will use the cash to expand into the under-served wholesale markets of Southern and Eastern Europe, the Middle East and North Africa, and grow the corporate customer base using its next-generation network.

The Tecom investment coincides with Interoutes acquisition last week of Via Networks and the PSINet Europe assets.

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