Transaction Network Services, the electronic transaction processing company which has complained to the European Commission about the Government's decision not to put the An Post social welfare payments out to tender from 2000-2003, has entered into an agreement to be acquired by the Internet service providers, PSINet, in a deal worth $720 million (#680 million).
The merger of the two US-based publicly quoted companies would allow Transaction Network Services (TNS) to provide new Internet services, the managing director for Ireland and Europe, Mr Pat Kirby, said.
The purchase price consists of $351 million (#332 million) in cash and up to 7.8 million PSINet shares.
Mr Kirby added that he was expecting positive news on the European Commission complaint on the social welfare contract, worth £35 million annually, in four to six weeks.
The TNS complaint has been expanded to include anti-competitive issues, as well as the original public procurement issue.
He said new services on offer through the merger would include virtual private networks, Web site host and management services and Internet protocol fax and voice services.
