OneMain.com nets IPA
by January 11, 1999 12:00 am 99 views
Fort Smith-based Internet Partners of America is one of 17 Internet providers being purchased by OneMain.com, a company that plans to go public soon.
Documents filed Dec. 30 with the Securities and Exchange Commission show that the four-year-old IPA received $7.8 million in cash and 368,136 shares of stock valued at more than $6.6 million (based on an anticipated price of $18 a share) for a total of $14.4 million. IPA’s assets were valued at $2.4 million.
IPA, which will be part of OneMain.com’s Southeast Group, has experienced rapid growth during its short history but that growth has come at a cost. Shareholders’ equity for the nine months ended Sept. 30 was a deficit of more than $1 million. At the same time, revenues were $3.6 million, a 144 percent increase from 1997.
The company has more than 22,000 subscribers in Arkansas, Missouri and Oklahoma.
OneMain.com, which expects to complete its initial public offering before March 31, says the combined purchase price for the 17 providers is about $66.6 million. The deal will give OneMain.com 273,000 subscribers and make it one of the 10 largest independent Internet service providers in the country, according to the SEC filing. OneMain.com expects to serve individuals and businesses in secondary, tertiary and rural markets where the national on-line service providers offer limited or no service.
BT Alex. Brown is the underwriter.