Mergers and Acquistions News
Categories: Telecoms
October 3rd 2008, 15:34PM
American Midwest local exchange carrier First Communications has completed its takeover deal with Chicago-based GCI Globalcom Holdings.
The closure of the deal, which was subject to various conditions such as regulatory approvals that have now been met, was announced this week.
Worth $58.5 million, the takeover was financed from $50 million (£28.1 million) in incremental loans from several banks and $8.5 million from existing resources within the company.
Anticipated annual cost savings are expected to be more than $8 million within 18 months.
Following the completion of the acquisition, First Communications is expected to enjoy a stronger infrastructure and expanded customer base.
First Communications specialises in advanced data and voice services for commercial and residential customers.
It boasts eight consecutive profitable years, having doubled its revenue and tripled its earnings since 2005.
Globalcom brings services to small and medium sized firms in Chicago. Globalcom Holdings is its sole shareholder.
Ray Hexamer, chief executive officer of First Communications, said the acquisition would strengthen the company's "Midwest footprint" while enabling greater growth in the region.
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