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Mergers and Acquistions News

Categories: Telecoms

September 14th 2010, 17:02PM

New York-based Paetec Holding Corp, a business communications firm, has announced it will acquire Cavalier Telephone Corp, a US telephony and internet provider, for $460 million (£298 million).

Cavalier's majority owner is M/C Venture Partners, a private equity firm.

The acquisition will bring almost 17,000 fiber-route miles to Paetec's network, meaning the firm can offer customers last-mile connectivity and reduce expenses through renewed cost plans and network auditing.

Paetec said it will cement its position as one of the leading local communication service providers in the US.

"This planned acquisition of Cavalier fits our strategic plan to add both fiber assets and regional density to better serve our customers and realize increased network synergies, both in the local loop and long haul," said Arunas A. Chesonis, chairman and chief executive officer of Paetec.

"Cavalier's fiber infrastructure, network assets and corporate culture make it a perfect match for PAETEC and dramatically strengthen the company in the Eastern United States."

Paetec posted revenues of $396.1 million (£257.1 million) for 2010's second quarter.
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