Internet portal Lycos Europe has bought Sweden’s Spray Network in a deal worth $574 million.

Lycos will purchase 84.3 million shares in Spray, which will in turn buy 10m shares, or just under 30%, in Lycos.

Analyst Oscar Andreu described the price as “reasonable”, adding, “The acquisition fills a hole for Lycos, and gives it a more pan-European presence. It also helps Lycos in France and Italy, where Spray is a non-negligible player”.

Lycos Europe, backed by Bertelsmann, is unlikely to have finished its consolidation. The firm yesterday announced it had a further €680 million war chest to play with. However, at the beginning of this month the company admitted a tenfold increase in 1999 losses.

News source: Financial Times