Business News - BTI Gets Max in Cash, Stock Deal

Posted: 08/2000

BTI Gets Max in Cash, Stock Deal

BTI Telecom Corp.
(www.btitele.com), the Raleigh, N.C.-based ISP, has acquired Max Commerce Inc.
(www.maxcommerce.com), an Atlanta-based Internet solutions company. The cash and stock deal is worth an estimated $12 million. The purchase, coupled with last month’s acquisition of US Datacom Inc.
(www.usdatacom.com), is part of BTI’s strategy to give customers a single turnkey solution for their access requirements, says BTI’s president and CEO Mike Newkirk.

In the Max Commerce acquisition, BTI paid $3 million in cash and stock. The purchase price is subject to an additional earnout provision of $9 million based on performance objectives during the next 18 months. BTI also paid cash and stocks for US Datacom, which is expected to have revenues of $10 million this year. Newkirk declined to say how much the total cost for US Datacom would be.

Max Commerce and US Datacom will continue to operate under those names as business units of BTI.