TMCnet News
Conversent Communications and FiberNet Announce MergerMARLBOROUGH, Mass. & CHARLESTON, W.Va. --(Business Wire)-- Jan. 4, 2005 -- Conversent Communications, LLC and FiberNet, LLC, two of the nation's leading facilities based Integrated Communications Providers (ICP), today announced their intent to merge in a stock transaction. Upon completion of the merger, the companies will serve 51,000 customers and employ more than eight hundred people in ten states throughout the Northeast and Mid-Atlantic regions. "Rob Shanahan and Jack Pottle have done terrific jobs in managing Conversent and FiberNet, respectively," said Bob Fanch, Chairman and Founder of Conversent and FiberNet. "The companies have been generating meaningful growth and substantial free cash flow for two years and we are very pleased to be able to bring these two very successful businesses together. This combination will allow us to create additional value through deployment of existing and new services to businesses operating in our region, along with positioning the joint company for consolidation in our markets." Conversent and FiberNet will retain their respective brand identities in the markets they currently serve and customers of both companies will not experience any changes in operations, sales, service or billing. Additionally, the companies will maintain all regional office locations, which will ensure continued local customer sales and service, as well as their commitment to the local communities served. "This is an ideal opportunity for Conversent and FiberNet. It is clear that this merger will strengthen us by creating financial mass," said Robert Shanahan, president and CEO of Conversent. "The combined cash flow of our companies will provide greater opportunity for continued expansion, and enhance more extensive deployment of services such as Wi-fi and VoIP." "This merger is exciting for Conversent and FiberNet as well as for our customers across the Northeast, West Virginia, Pennsylvania and Maryland," said Virgil Parsons, president and COO of FiberNet. "Conversent and FiberNet are dedicated to providing innovative, quality products with a level of personalized service that cannot be matched. This merger will allow us to better serve our communities and will strengthen our ability to ensure that customers who have been traditionally underserved have access to the most advanced telecommunications services." Conversent and FiberNet offer a full compliment of local, long distance, and data services, including VoIP, VPN, DSL, and Internet, to a range of business customers as well as government and educational institutions. In addition, FiberNet provides voice and Internet services to the residential market. Collectively, the companies will serve approximately 300,000 local access lines, with over 3,900 miles of state-of-the-art fiber optic network, 7 voice switches, and 196 co-locations in 10 states. The companies had combined revenue of $205M and EBITDA of $66.3M in 2004, which represented increases of 19% in revenue and 43% in EBITDA over 2003 results. The merger is expected to be completed in March 2005. About Conversent Communications Conversent is a facilities-based communications provider that offers businesses a broad portfolio of voice, data and Internet Services that are bundled to meet the specific needs of each customer. Recognized as one the Northeast's premiere telecommunications providers, Conversent provides its clients innovative and flexible communication solutions backed by a dependable network and a knowledgeable and dedicated customer support staff. Conversent was founded in 1998 by cable entrepreneur Robert Fanch and Conversent's president and CEO, Robert Shanahan. Seaport Capital is an investor in Conversent. More information is available at www.conversent.com. About FiberNet FiberNet, L.L.C. was formed in West Virginia in 1997 and is affiliated with The Blackstone Group, Charter Communications, and Fanch Communications, Inc. Since its inception, FiberNet has proven itself to be the statewide leader as a competitive telecommunications service provider. FiberNet provides telephone, high-speed voice and data and networking services to businesses, educational institutions and state government agencies pairing world class technology with superior and personalized customer service. For further information about FiberNet LLC, visit our web site at www.wvfibernet.net. |
