Qwest Communications will acquire OnFiber Communications for
$107 million purchase price with Qwest having the option up until closing to substitute up to $35 million of Qwest shares for cash.
OnFiber operates an all-optical network in 23 metropolitan areas and features a full offering of access and transport services, including Ethernet, SONET and Wavelength. The company expects to post revenues of nearly $60 million in 2006, representing year-over-year growth of more than 20 percent.
“We expect the Ethernet market will grow upwards of 50 percent annually; Ethernet has been a high growth product for us in-region, and this increases our participation nationally,” said Tom Richards, Qwest executive vice president, business markets group. “For Qwest, this expands our penetration in key markets throughout the country while reducing last-mile costs. It absolutely fits our criteria for a return-focused acquisition.
http://www.qwest.comhttp://www.onfiber.com
- OnFiber was founded in December 1999 and has previously announced nearly $156 million from Kleiner Perkins Caufield & Byers, Incepta (affiliate of Bechtel Enterprises), Bear Stearns Merchant Banking, Amerindo Investment Advisors, GE Capital, TeleSoft Partners and others.
- Danny Bottoms has led OnFiber as President & CEO since 2001. Earlier in his career, Bottoms was VP of Construction for Qwest Communications, where he managed the construction of a majority of the Qwest national network.
- In June 2004, OnFiber Communications acquired a majority of the assets and all customer contracts of C2C Fiber of Massachusetts, a competitive carrier operating in the Boston metropolitan area. The deal included approximately 350 route miles in over 25 cities and towns throughout the Boston area, including the I-495 corridor. Financial terms were not disclosed.
- In August 2003, OnFiber acquired a majority of the network assets and customer contracts of Telseon Inc.