Sunday, December 5, 2010

PAETEC Completes Acquisition of Cavalier Telephone

PAETEC Holding Corp. has completed its previously-announced acquisition of privately-owned Cavalier Telephone. The deal, which was valued at $460 million at the time it was announced in September 2010, makes PAETEC one of the largest competitive local communication service providers in the United States.

The acquisition includes Cavalier's wholly owned subsidiary, Intellifiber Networks, which operates a high capacity fiber network spanning approximately 16,600 route miles and representing over $2 billion of investment by companies Cavalier acquired over the last decade. The expansive 11,947 route-mile intercity network spans the Midwest and Eastern U.S., as well as 4,681 route miles throughout several existing PAETEC metro areas, allowing for broad connectivity options for customers.

With this deal complete, PAETEC now has over 10,600 metro fiber-route miles, over 36,700 total fiber-route miles, and 1,178 collocations to support connectivity to enterprise businesses nationwide.

"We are very pleased to close this acquisition of Cavalier Telephone in less than three months from signing the definitive agreement," said Arunas A. Chesonis, PAETEC chairman and CEO. "Over the summer, we developed a dedicated cross-functional M&A team to facilitate the complex merger issues. That team, along with the diligent efforts of our regulatory, legal and financial staff, made this a dramatically quicker process."