Teleport to Buy Internet Provider Cerfnet
Teleport Communications Group Inc., which is owned by a group of cable TV companies, said it will buy Internet service provider Cerfnet from General Atomics and its affiliates in a stock deal worth $66.4 million. Under the deal, New York-based Teleport would acquire General Atomics in exchange for 2.1 million of its Class A common shares. Based on Teleport’s closing price Friday of $31.625, the deal is valued at $66.4 million. General Atomics is a founding participant in the National Science Foundation Network, which later evolved into the Internet. Cerfnet, based in San Diego, is one of the oldest Internet providers, having been set up in 1989. It has 6,000 mainly corporate and professional users. Teleport’s shares gained 87.5 cents to close at $32.50 on Nasdaq.