Monday, July 19, 2010

NTELOS to Acquire FiberNet for $170 Million

NTELOS will acquire One Communications' FiberNet business for approximately $170 million in cash.

The FiberNet fiber optic network of approximately 3,500 route miles covers all of West Virginia and extends into surrounding areas in Ohio, Maryland, Pennsylvania, Virginia and Kentucky. FiberNet service revenues and adjusted EBITDA for 2009 were approximately $76 million and $25 million, respectively. Capital expenditures for 2009 were approximately $13 million.

nTelos is a provider of wireless and wireline communications services to consumers and businesses in Virginia and West Virginia.

"The FiberNet purchase is another significant step for NTELOS as we continue to position our wireline business as the preferred provider of high-bandwidth data products in the Mid-Atlantic region," said Frank L. Berry, NTELOS executive vice president and president of wireline operations. "In addition to immediate financial contributions from the embedded customer base, this acquisition will provide NTELOS with new opportunities within our core business of providing high bandwidth services to large enterprises, government customers and carriers. Consistent with our strategic growth vision, by increasing FiberNet's customer penetration and usage across our service area, we will further leverage operational and back office platforms already in place."

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