Tiscali said the Liberty Surf deal would increase its active subscriber base to 4.9 million from 3.8 million.
Based on Tiscali's Monday morning share price of 13.50 euros, the deal valued LibertySurf shares at about 7.05 euros each.
But Riis must first find a new sponsor after the departure of CSC's main backer, Italian Internet and telecoms firm Tiscali.
European net service provider Tiscali has seven million customers across 15 countries but only a small proportion, 100, 000, are signed up for broadband.
Tiscali had stretched its resources to the limit by building up its Italian Internet operation, as well as buying in Belgium, France, Switzerland and Germany.
As it released, the software Kazaa announced the tie-up with Tiscali.
Like many net companies Tiscali has been looking for a good reason to get people using broadband and Kazaa might help them convince customers to upgrade.
Tiscali, based in Soru's hometown of Cagliari, Sardinia, will serve 6 million people in 15 European countries, making it the second-largest European ISP behind Deutsche Telekom's T-Online.
Italy's Tiscali, another big European ISP, reported a core loss of 3.6m euros in the quarter, compared with a 44.8m loss for the same period last year.
Under the deal the separate services will be cross-promoted and Kazaa will get a bounty for every user that signs up to Tiscali as a result of the advertising.
Renato Soru, the incumbent PD governor and founder of a successful internet firm, Tiscali, was roundly defeated in the Sardinian elections by a challenger from Mr Berlusconi's centre-right movement.
Revenues at T-Online were 383m euros in the quarter, in-line with expectations, up from 270m a year ago, while at Tiscali they slipped to 179.9m from 190.1m the previous year.
Tiscali found the most common personal details published online were photos (68%), while nearly half of those questioned (49%) included their date of birth on profiles, 40% gave their email addresses, and 20% their job details.
Tiscali said in a statement it would have second or third positions in Italy, France, the Netherlands, Belgium Switzerland, the Czech Republic and South Africa following the acquisition, which is due to be completed in the first quarter of this year.
World Online's bungled flotation, and the subsequent resignation of Nina Brink, its founder and chairman, were grubby events, but they left the company with euro1.6 billion of cash in the bank, money that Tiscali can now use to finance its ambitious plans.
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