Internet, Latvia, Legislation, Mergers and take-overs, Technology

The contract stipulates that both companies will continue operating under their current names, with Stream Networks becoming the parent company and Latnet a subsidiary. The price of the deal has not been disclosed.

The previous owner of Latnet Serviss and the company's head Vladimirs Atlavins will be replaced by board member and sales manager Vladislavs Gurmans, who has been working at Latnet for almost 15 years. Egdars Ricevs, a co-owner and CEO at Stream Networks, will be the other board member at Latnet Serviss.

Stream Networks belongs to ZGI fonds with 49.14% of shares and Ricevs with 30.93% of shares, while Agnis Akmenlauka, Peteris Cirulis, Juris Gluditis and Dace Safranska hold 4.98 percent of shares each, according to information provided by Firmas.lv.

"We are pleased to announce that the deal will lay the foundation for a new telecommunications giant that will become the second largest market player in the corporate sector. This was a logical step in regard to the development of both companies, as they both offer similar services, and will successfully supplement one another," Ricevs said.