Over 50% of Virtual Internet's investors have agreed to the sale, seeing it as an opportunity to expand into an international market otherwise unavailable without the contacts and resources to be provided by Register.com.
The buy out offer has increased Virtual Internet’s share price dramatically. This is encouraging news for the company and its investors, particularly after the recent announcement that the company’s losses before tax for the year 2001 had increased by over £10 million.
Register.com, a provider of web hosting services to businesses and a seller of internet domain names, also reported heavy losses last year - $28.8 million for the period commencing June to September 2001 alone. A full report of the company’s profits is expected to be published on 11 February. Its acquisition of Virtual Internet is part of a long-term strategy to increase its European market share.
It is rumoured that Register.com’s offer is in the region of £12 million, however further details are expected later this month once the deal has been finalised.