Sunday, December 12, 2004

FiberNet to Acquire Con Edison Communications

FiberNet Telecom Group agreed to acquire Con Edison Communications (CEC), a subsidiary of Consolidated Edison, for approximately $37 million in cash. Both FiberNet and Con Edison Communications provide managed network services in the New York metropolitan area. In acquiring CEC, FiberNet gains access to the Con Edison Company of New York (CECONY) electric conduit system, positioning FiberNet as the only company to extensively use both the electric utility and conventional telecommunications rights-of-way. FiberNet said it will therefore be able to offer customers true physical diversity to support their business continuity and disaster recovery needs.

Together, FiberNet and CEC currently serve more than 400 customers, comprising global telecommunications carriers and Fortune 500 corporations, including major financial institutions, the world's leading trading exchanges and other sophisticated data networking users. Combined network assets will include almost 80,000 fiber miles and access to 190 buildings in New York and Los Angeles, including 18 central offices, 22 carrier hotels and 150 commercial buildings.

The companies said that based upon current results, approximately 63% of the combined company's revenues will be from telecommunications carriers, and 37% will be from enterprise customers. In the first nine months of 2004, FiberNet posted $23.7 million in revenues, excluding a non-recurring arbitration award. CEC recorded $23.9 million in revenues during the same period.

The acquisition is pending regulatory approval from federal, state and municipal authorities. http://www.ftgx.com


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