Techpacific.com agreed to pay $10 million (Australian) for a 51% controlling stake in Spike Networks' Spike CyberWorks, a Sydney, Australia, digital agency. Techpacific.com is calling its move a "natural fit" between its technology and Internet businesses and the digital services offered by Spike CyberWorks. Techpacific.com will acquire the 30% of Spike CyberWorks currently owned by Pacific Century CyberWorks; in return, PCCW will be issued $10.5 million (Australian) worth of ordinary shares of techpacific.com at a price of 40 cents (Hong Kong) per share for its stake. Following the transaction, PCCW will own approximately 4% of Techpacific.com, and thereby retain an indirect interest in Spike CyberWorks.
Techpacific.com also will be granted an option to increase its stake in Spike CyberWorks by a further 15.67%. Techpacific.com's existing digital services business will be fully integrated into Spike CyberWorks. Spike CyberWorks currently employs more than 150; the interactive agency positioned itself as a provider of Internet professional services when it went public last July (AA, June 19, 2000), taking the name Spike CyberWorks under a joint venture between Spike Networks and Pacific Century CyberWorks.
Copyright January 2001, Crain Communications Inc.