Esat Telecom has completed its £115 million (€146 million) acquisition of the Internet service provider PostGEM and its subsidiary Ireland On-Line from An Post.

The purchase was financed by a dual bond and stock offering, with which it raised €175 million of 11 7/8 per cent senior notes due in 2009 and $74.75 million worth of primary ordinary shares.

The money will be used for the growth of the company's data and Internet businesses and to develop its infrastructure, including wireless local loop.