INTERNET Services Ireland has bought one of its competitors, EUnet Ireland, for an undisclosed sum, believed to be £1 million.

The deal, which also involves an additional investment of about £1 million, is being funded by a consortium of investors which will control the new company. The Horizon Computer will be the largest share in the new venture, which trade as EUnet Ireland. Others shareholders include the Isle of Man investment company, Horsford; ISI chairman and founder, Mr Paul Kenny; and businessman, Mr Tony Kilduff.

According to the managing director of EUnet Ireland, Mr David Mee, the company currently has over 60 per cent of the corporate Internet market in the Republic.

ISI, which operates the HomeNet, WorkNet, and InterWeb services, was established last year by the Horizon Computer group and Mr Kenny, who was formerly a director of NCB stockbrokers.

EUnet Ireland claims to be Ireland's oldest Internet service provider.

Before the merger EUnet Ireland is understood to have had between 500 and 700 corporate clients and a turnover of about £350,000.

The two largest Irish Internet companies are Indigo and Ireland On Line.