ATLANTA – Internet Service Provider EarthLink (Nasdaq: ELNK) is continuing its transformation into a nationwide communications provider with a $370 million deal for New England-based One Communications.
EarthLink announced the deal early Monday.
The company recently closed on its acquisition of telecommunications provider Deltacom.
“The acquisition of One Communications is a significant development in further transforming EarthLink into one of the largest IP services companies in the U.S.,” said EarthLink Chairman and Chief Executive Officer Rolla Huff in a statement. “We will now have a fiber-based IP network that covers a substantial portion of the key business markets across the eastern half of the United States, as well as substantial revenue and EBITDA scale in our strategic line of business.”
As part of the One Comm deal, EarthLink also is paying $285 million in One Comm debt. One Comm shareholders can chose to receive cash or EarthLink stock.
EarthLink said the deal would provide:
- ”A strong IP network footprint in the Northeast, Midwest, and Mid Atlantic regions;
- “Overlapping connection cities with EarthLink Business (formerly Deltacom) long-haul routes in major markets including Washington, D.C., Baltimore, Philadelphia and New York City;
- ”Geographical expansion and scale for managed IP services product strategy supported by a talented One Comm employee base; and
- ”A solid foundation for potential future acquisitions of revenue bases in the region.”
One Comm’s headquarters are located in Burlington, Mass. It has some 1,500 employees.
EarthLink will incorporate One Comm into its business division, which includes Deltacom and other units.
Once the deal is closed, EarthLink will offer a 28,000-mile fiber network across 27 states that includes 30 of the 50 largest metropolitan statistical areas.
For more details, read here.
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