NEW YORK (CNNfn) - Metromedia Fiber Network Inc. agreed Tuesday to acquire SiteSmith Inc. for about $1.36 billion in stock in a move that will expand the company's reach in optical Internet infrastructure services.|
Metromedia will swap between 55 million and 62.5 million shares, depending on its share price prior to closing. If Metromedia's shares are less than or equal to $27.27 for 20 trading days ended four days prior to transaction's closing, SiteSmith shareholders will receive 55 million shares. If the †average price is less than or equal to $24, SiteSmith holders will receive 62.5 million shares.
The boards of both companies have approved the purchase, which is expected to close by the end of the year.
Santa Clara, Calif.-based SiteSmith provides Internet infrastructure management services, including design and architecture, and hardware and software installation. The company has more than 400 employees and eight locations in the U.S. and Europe.
New York-based Metromedia Fiber (MFNX: Research, Estimates) provides optical network services and plans a fiber-optic network in 16 cities throughout Europe.
Metromedia Fiber shares fell $1 to close at $21.81 Monday.