360networks will sell its Canadian assets, primarily Group Telecom, to Bell Canada for US$205 million in cash. Bell will also purchase selected northern U.S. interconnection assets and related liabilities.
360networks said it would use the cash to pay off its debt. Following the closing of the deal, 360networks will focus on its US operations, which include a long-haul network footprint with metro access rings and a regional network across the Western U.S. with unique reach into rural markets.
Bell Canada intends to retain 360networks' facilities and customer base in Western Canada and will sell significant portions of 360networks' business customer base in Eastern Canada. The deal will give Bell an extensive fiber network that includes local facilities in Vancouver, Victoria, Calgary, Edmonton and other cities in Western Canada. The company will also gain access to almost 200 office buildings in Western Canada.
Call-Net Enterprises, a Canadian integrated communications provider known primarily by its wholly-owned subsidiary Sprint Canada, entered into an agreement with Bell Canada to acquire certain assets of 360networks. This deal includes significant portions of 360networks' business customer base and specific network facilities in Ontario, Quebec and Atlantic Canada. Call-Net will enter into a two-year transitional services agreement with Bell to provide technical and operational services to the newly acquired customer base and in exchange be paid approximately 70 per cent of the total retail revenue. Call-Net's acquisition price for the business customer base represents approximately three months of acquired revenue and will be paid over the term of the agreement. The 360networks business customer base in Eastern Canada is expected to add in excess of $50 million to Sprint Canada's total business revenue. http://www.360.nethttp://www.bell.ca
- In January 2004, 360networks completed its acquisition of Touch America. The network assets included approximately 10,300 route miles within a regional network that stretches throughout fifteen western states.
- In November 2002, 360networks acquired GT Group Telecom for approximately C$260.5 million (US$164 million) in cash. Group Telecom operated a national fiber network across Canada with 17 metro fiber rings.
