EarthLink completed its previously announced acquisition of ITC^DeltaCom,
a leading provider of integrated communications services to customers in the southeastern United States, in a transaction valued at approximately $524 million. Under the deal, ITC^DeltaCom (Deltacom) stockholders received $3.00 in cash per each share of Deltacom common stock in the transaction.
EarthLink will now begin integrating its New Edge Networks and EarthLink Business Services operations with Deltacom and will market the combined services under the 'EarthLink Business' brand name.
Deltacom operates a 16,400 mile fiber optic infrastructure in the Southeast -- over 75% of which is owned or controlled under Indefeasible Right of Use (IRU) agreements -- including a 14-state SONET backbone with 35 metro fiber rings, 294 collocations and 20 voice and data switches. Deltacom currently serves over 32,000 small and mid-size businesses, multi-location enterprises, government agencies and wholesale customers in the southeast with services including MPLS and IP.
Through its New Edge Networks division, EarthLink already provides business services over a nationwide MPLS network.
"With the addition of Deltacom's deep fiber assets and strong customer relationships, EarthLink is creating a leading IP infrastructure and services company. We are pleased to have gained the regulatory approvals required to close this transaction in just ten weeks. We've acquired a business that has meaningful revenue streams, strong gross margins and unlevered free cash flow that positions EarthLink for future strategic value creation," said EarthLink Chairman and Chief Executive Officer Rolla P. Huff. "http://www.earthlink.net
- In March 2006, EarthLink acquired New Edge Networks.
