LONDON-Cable & Wireless plc has offered to acquire all outstanding shares of Digital Island Inc. at $3.40 per share, which would make Digital Island a wholly owned subsidiary of Cable & Wireless. Digital Island would remain based in San Francisco and led by its current management team.
By merging, Cable & Wireless and Digital Island would become a global provider of end-to-end IP-based solutions. “The proposed acquisition of Digital Island accelerates the implementation of Cable & Wireless’ global IP and data strategy in the key area of value added services,” explained Graham Wallace, chief executive of Cable & Wireless. “The combined company will be able to offer a comprehensive range of IP/data transport, hosting, content delivery and other value-added services to business customers in the U.S., Europe and Japan.”
