Monday, December 12, 2005

EarthLink to Acquire New Edge Networks

EarthLink, a leading U.S. ISP with over five million subscribers,, agreed to acquire New Edge Networks, a privately-held single-source national provider of private Virtual Private Networks (VPNs) and secure multi-site managed data networks and dedicated access for businesses and communications carriers.


New Edge Networks integrates a wide variety of last-mile broadband access services available through multiple carriers, technologies, and geographic region. It owns a nationwide multi-services network with more than 850 carrier-class switches and Internet routers. New Edge Networks' core and extended DSL coverage spans about 12,800 telephone company central office locations that are equipped for DSL service across the U.S. The coverage footprint is especially strong in small and midsize markets. In addition to DSL, it offers ATM, Frame Relay, and Private Line Services.


Together, EarthLink and New Edge Networks plan to package their voice, data, protection, and security tools, targeting the -speed access and VPN services for both small office and home office (SOHO) users as well as small and medium enterprise (SME) customers.


EarthLink will pay approximately $144 million, consisting of 2.6 million shares of EarthLink common stock and $114.3 million in cash, including cash to be used to satisfy certain liabilities. EarthLink plans to retain New Edge Networks' 345 employees and the New Edge Networks brand. New Edge will continue to be based in Vancouver, Washington.


The New Edge customer base is expected to generate approximately $120 million in revenues in 2005.
http://www.earthlink.nethttp://www.newedgenetworks.com

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