November 01, 2006
Time Warner Telecom Closes Xspedius Acquisition
By Johanne Torres, TMCnet Contributing Editor
Time Warner Telecom announced Wednesday that it completed its acquisition of data and voice services provider Xspedius Communications. Time Warner ( News - Alert) announced its plans to acquire the O'Fallon, Missouri-based company for US $531.5 million in cash and stock back in July.
According to the terms of the agreement, the company issued 18,249,428 shares of Class A Common Stock and paid $216 million in cash, including an adjustment for working capital. The company assumed no debt in the transaction.
“We continue to believe in the value of the last mile connectivity to enterprise customers, and this acquisition further expands our network reach and market density, enhancing our ability to further fuel enterprise growth,” said Time Warner Telecom’s ( News - Alert) chairman, CEO and president, Larissa Herda, in a statement.
Herda continued: “We have been preparing for the integration of the two companies, and look forward to achieving the synergistic capabilities of the powerful combined fiber footprint and advanced network solutions created by the merger of both operations.”
Xspedius currently serves small to mid-sized businesses in the southern US. The company purchased ICG Communications' business and assets, a company based in Greenwood Village, last April, to complete a total of 3,500 route miles of fiber.
According to Time Warner officials, the company expects the purchase to result in up to US$50 million in cost savings within a year from now.
Time Warner Telecom Inc.
Johanne Torres is contributing editor for TMCnet and INTERNET TELEPHONY magazine. To see more articles by Johanne Torres, please visit her columnist page.
(source: http://voipforenterprise.tmcnet.com/feature/enterprise-transformation/articles/3359-time-warner-telecom-closes-xspedius-acquisition.htm)
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