Thursday, August 23, 2007

XFONE to Acquire Texas-Based NTS

Xfone USA agreed to acquire NTS Communications, a provider of integrated voice, data and video services based in Lubbock, Texas, for $42 million.

NTS operates the largest CLEC network in West Texas, providing local, long distance, broadband data, video and private line services to approximately 47,500 residential and business customers. Markets served include Lubbock, Amarillo, Midland/Odessa, Abilene, Wichita Falls, Pampa and Plainview. NTS operates through 21 ILEC central office collocation sites within its core areas and provides nationwide private line and regional long distance service as well as statewide, Midwest and northwest regional services to customers beyond its own network facilities through a variety of inter-carrier arrangements.

The company says it has invested over $23 million in developing a Fiber-to-the-Premise platform for residential and business customers.

Following the acquisition, the combined company will have annualized revenues and EBITDA exceeding $114 million and $13 million, respectively based upon the first six months of 2007 unaudited results.