MicroLink buys Internet company

TALLINN (BNS) - Estonia's leading IT company, MicroLink, announced acquisition of a 74.5 percent holding in Parks LvNet, Latvia's leading Internet company and plans to create a Pan-Baltic Internet company later this year.

MicroLink CEO Allan Martinson said July 12, Parks LvNet and MicroLink On-line have already started to unify back-office operations to create added value and synergy.

He said the aim of the cooperation is to create a Pan-Baltic Internet company to provide data communication services, e-commerce and Internet content in all three Baltic countries.

"Investments in Internet is part of MicroLink's strategy to focus on the fast-growing Internet and IT services sector," Martinson said. "This doesn't mean Micro-Link is planning to drop computer prodcution."

He said the companies plan to invest several million U.S. dollars into those areas in 1999.

Parks LvNet was set up in a merger of two independent Internet companies, Parks and LvNet Teleport, in May. Similar to MicroLink On-line, Park LvNet controls a 35 percent to 40 percent share of the domestic market in dial-up Internet customers and 20 percent to 25 percent of the leased line market.