Metromedia Fiber Network Plans Acquisition of SiteSmith
Metromedia Fiber Network Inc., a builder of urban fiber-optic networks, said that it will buy SiteSmith Inc., a Santa Clara, Calif.-based start-up supplier of Web site services, in a $1.36-billion stock deal. The purchase adds SiteSmith’s services that help electronic commerce sites handle high transaction volumes. Metromedia Fiber said that SiteSmith shareholders would get between 55 million and 62.5 million Metromedia Fiber shares, depending on the Metromedia Fiber share price over a period before the deal’s closing. Based on Metromedia Fiber’s $21.81 closing price Monday, the deal would be valued at $1.36 billion. Metromedia is majority-owned by Metromedia Co., a franchiser of steakhouse chains.