Net 2000 Makes

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Net2000 Communications, a telecommunications solutions provider with offices in Baltimore, yesterday announced the $33 million acquisition of Virginia-based FreBon International Corp., a provider of video interactive services.Acquiring FreBon will allow Net2000 to increase its presence in the interactive video arena and among state and federal government agencies, according to Charlie Thomas, chief executive officer of Net2000.“This acquisition vastly strengthens our integrated bundle of service offerings, and now provides a high-end ‘sticky’ application that will further fuel demand for our broadband network services to our base of larger customers. In addition, Frebon’s strong customer base in the state and federal government markets ideally complements our commercial base,” Thomas said in a statement issued before a late afternoon conference call.The purchase price, Thomas said, included $9 million in cash and 400,000 shares of FreBon stock valued at $6.4 million. Additionally an earn-out of $15 million cash or stock was agreed on, based on attainment of certain financial milestones during the next year. Debt assumedNet2000 also assumed $2.8 million of FreBon’s debt under the agreement. The transaction is expected to close in the next 30 days.In addition to Baltimore, Net2000 operates sales offices in Boston; Providence, R.I.; New York City; Long Island, N.Y.; New Jersey; Washington, D.C.; and Richmond and Virginia Beach, Va.According to Thomas, FreBon is a leader in the transport of video, data and Internet-based technologies. The company provides services to national and international clients, including federal and state government agencies, telemedicine providers, universities, businesses and healthcare providers. FreBon founder and CEO Fred Mueller said the merger should bring positive results for both companies.“We’re pretty excited about [what the partnership offers,]” Mueller said. “It will allow us to move to the forefront of integrated service.”No layoffs are expected for FreBon’s 55 employees, Thomas said.He declined to comment on the merger’s impact on the company’s revenues. Net2000’s stock closed up $1.81 to $16.63 on the Nasdaq.