Xpedior (Nasdaq: XPDR) was up 6 7/16 in early trading Wednesday to 20 3/4, following news that PSINet (Nasdaq: PSIX) will take a controlling stake in the e-business software company.
The agreement is part of a plan PSINet announced today to buy software firm Metamor Worldwide (Nasdaq: MMWW), which controls Xpedior, for $1.9 billion in stock. PSINet was down 8 15/16 at 40 9/16, and Metamor was up 13 1/2 at 29 3/4.
PSINet will invest $50 million in Xpedior convertible preferred shares. Xpedior said it will use the money to accelerate growth and make acquisitions. “We believe this investment coupled with the strategic relationship should significantly enhance our growth plans in 2000 and beyond,” said David Campbell, president and chief executive of the Chicago, Illinois-based Xpedior.