Thursday, October 21, 2004

Mpower to Acquire ICG's California Customers, Network

Mpower Communications will acquire ICG Communications' network assets and customers in California for $13.5 million in stock. The deal includes ICG's California retail and wholesale customers; a 1,412 route mile state-wide self-healing DWDM and SONET-based fiber ring connecting San Jose, San Francisco, Oakland, Sacramento, Stockton, Fresno, Bakersfield, San Diego, Anaheim and Los Angeles; 915 route miles of fully-survivable metropolitan SONET-based fiber rings in San Jose, San Francisco, Oakland, Sacramento, San Diego and Los Angeles which connect 128 commercial buildings, 33 of Mpower's existing collocations and 11 ICG collocations that will be added to the Mpower footprint. The acquisition is expected to contribute in excess of $30 million in revenue and $8-$10 million of operating income (excluding expenses related to depreciation and amortization of the acquired assets) in 2006.

In connection with the acquisition, Mpower also announced that telecom investment funds Columbia Capital and M/C Venture Partners, through their ownership of ICG, will invest $2.5 million in cash for 1,988,894 shares of Mpower Holding's common stock.


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