THE region's biggest provider of Internet connections believes it is set for a sparkling future after a management and employee buyout secured its future.

Onyx Internet, based on the Riverside Park in Middlesbrough, appeared to be on the verge of folding when the administrative receivers moved in before Christmas.

After its parent company, Pacific Gateway Exchange, defaulted on a loan, the future of Onyx and its 47 staff appeared far from secure.

But this week saw a buyout meaning the business will operate as a limited company retaining its entire staff and management.

MD Alastair White said: "This is excellent news for Onyx, for all our staff and technology in the region.

"Our focus on the niche business Internet sector means it has been protected from the tough trading that has damaged the consumer market, and it has a secure level of recurring income.

"The rapid growth of its customer base also made it a very attractive prospect for the management and employee buyout, and we are delighted with a successful outcome of the deal."

Founded in 1994 and bought by Pacific Gateway in 1999, Onyx Internet provides a wide range of quality Internet services specifically for the business market.

In the past year the company has been concentrating on the roll-out of high-speed ADSL technology, and in September created a number of new jobs to support the nationwide launch of the service.

ADSL offers business Internet connection up to 40 times faster than the ordinary BT telephone lines.

The new ADSL service replaces traditional modern dial-up facilities and helps businesses and consumers alike make massive improvements in the efficiency of Internet use

Solicitors for the buyout were Ward Hadaway and the financial advisors were Ernst and Young.