Broadwing Completes Acquisition of Focal Communications

Broadwing Communications (a division of Corvis Corp.) completed its acquisition of Focal Communications , a Chicago-based CLEC. Broadwing will gain approximately 4,000 enterprise and wholesale customers in 23 Tier-One markets throughout the U.S. The company estimates cost savings in the range of $20 million to $30 million dollars, net of integration costs, over the next 12 to 18 months.



Corvis acquired Focal for a total consideration of approximately $189 million, comprised of approximately $88 million in equity that was issued to Focal's existing equity holders and the assumption or payment of approximately $101 million of Focal's debt and other long-term capital lease obligations. For fiscal 2003, Focal reported approximately $320 million in revenue. http://www.corvis.com