martyn_williams
Senior Correspondent

Hotel Internet provider InterTouch to acquire rival MagiNet

news
Dec 21, 20071 min

NTT DoCoMo will invest $191 million into InterTouch to provide it with the funds to acquire rival broadband provider MagiNet

InterTouch, a provider of broadband Internet services to hotels, has agreed to acquire rival MagiNet for $150 million, InterTouch parent NTT DoCoMo said Friday.

Singapore-based InterTouch currently serves about 400 hotels in 45 countries and the deal will see its footprint expanded to about 950 hotels in 63 countries. MagiNet, which is also based in Singapore, is largely focused on the Asia Pacific region and itself just completed acquiring Percipia, a U.S.-based supplier of IP telephony systems to hotels.

As part of the deal NTT DoCoMo, which is Japan’s No. 1 cell phone carrier, will invest $191 million into InterTouch to provide it with the funds to acquire MagiNet and to service debt.

The acquisition is scheduled to be completed in February 2008.