Internet service provider PSINet's deal to buy a telecommunications company underscores the growing significance of transaction processing in emerging Web business strategies.

The Herndon, Va., company agreed last week to pay $720 million in cash and stock for Transaction Network Services Inc., a provider of telecommunications backbone services to many leading credit card and electronic banking systems. Its network carries 70% of U.S. credit card transactions and has been expanding globally.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.