Wireless communications company Motient (MTNT) was up 9.2% in preopen Island trading after it agreed to buy Internet services company Rare Medium (RRRR) .

The company said it will acquire Rare Medium using newly issued Motient stock, shares of

XM Satellite Radio


stock owned by Motient and $13 million cash.

Following the transaction, a $25 million loan to Motient by Rare Medium will be absorbed, and Motient will repay about $34 million in bank debt.

The combined company is expected to have service revenue in excess of $100 million.

Rare Medium was up 1.7%.