Sunday, July 20, 2008

First Communications Acquires GCI Globalcom for $58.5 Million

First Communications agreed to acquire GCI Globalcom Holdings, which delivers voice and data services for business customers in Chicago, for a total cash consideration of US$58.5 million.

Globalcom provides services to small and medium sized businesses in the Chicago market over its network of over 180 fiber route miles currently deployed in downtown Chicago and an additional 2,300 fiber route miles to be deployed during 2008 and 2009 in the suburban Chicago market. Globalcom had 2007 revenues of $55.6 million.

First Communications, which was established in 1998 by FirstEnergy and Boich Investments, is a leading facilities-based telecommunications provider specializing in advanced data and voice services for commercial customers as well as residential voice service. Its major markets include Cleveland, Pittsburgh, Columbus and Detroit.

Concurrently ,First Communications also announced the closing of $50 million in incremental term loan commitments, syndicated by JP Morgan Securities Inc. as Sole Lead Arranger and Sole Bookrunner and JP Morgan Chase Bank as Administrative Agent.