EarthLink expands ISP service via Cidco acquisition

EarthLink today announced it will acquire Cidco, a company that provides e-mail appliances and services for the home, for $5 million. The deal expands the reach of EarthLink’s Internet-access offerings by adding 120,000 customers.

The ISP will purchase 19.9% of Cidco’s outstanding stock for 0.36 cents per share. At least 51% of the common stock must be tendered prior to the offer’s expiration and be fully completed by Feb. 28, 2002. Shares not purchased in the tender offer will be bought at the same share price in a subsequent short-form merger.

The deal strengthens the ISP’s suite of Internet-access offerings, from low-cost appliances up to premium services such as high-speed home networking and wireless access. Cidco devices have retailed for as little as $99.95 and a monthly service fee of $9.95. Its MailStation and Mivo products are sold through retailers such as Best Buy, Kmart and Radio Shack.

--Amalia D. Parthenios, staff writer