Integra acquires ELI
The competitive carrier industry continues to consolidate. This morning, Integra Telecom announced it has acquired Electric Lightwave from Citizens Communications for $243 million in cash and the assumption of $4 million in capital lease oblications.
Both Integra and ELI operate in the Western portion of the U.S., but Integra will acquire ELI’s 220-mile fiber optic backbone network, direct fiber access into 583 buildings and metropolitan fiber facilities in the five cities that Integra doesn’t reach today, including Boise, Idaho; Phoenix, Ariz.; Sacramento, Calif., and Spokane and Olympia, Washington. The combined companies will have annual revenues of more than $300 million and pro-forma EBITDA of $100 million, according to an official statement from Integra.
Approximately 60 percent of that revenue comes from markets in which the two companies overlap, and expect to consolidate for new network efficiencies. Post-merger, Integra will operate in 23 metro markets in the states of Arizona, California, Idaho, Minnesota, North Dakota, Oregon, Utah and Washington.
“These robust metropolitan fiber networks will substantially increase our operating strength and provide a meaningful and sustainable competitive cost advantage over other local carriers that rely exclusively on leasing network from the Bell companies,” said Dudley Slater, chief executive officer of Integra Telecom, in a prepared statement.
Integra, which is a privately held company based in Portland, Ore., was able to raise $450 million in private capital, which it is using both to fund the acquisition of ELI and to refinance its current loan obligations and provide operating cash and money for transition expenses and fees. The funding consists of two lien facilities. CIBC World Markets is lead arranger of the first lien, working with Goldman Sachs Specialty Lending Group, which also co-underwrote the second lien, working with various investors.
Want to use this article? Click here for options!
© 2013 Penton Media Inc.
In this Webinar you will learn how to create a real-time relationship with your customers, how to proactively improve the customer experience, and how to successfully target and cross-sell services to boost incremental revenue.
- Megabytes to Megabucks, Bandwidth to Business Models: How 4G Is Changing Everything
- How to Unplug Your Redundant Telco Apps To Save Money and Improve Efficiency
- When IaaS Isn't Enough: Service Provider Business Models to Drive Growth and Build Margin
- How to Transform Your Aging Telco Voice Network to Drive New Profits and Revenue
- Creative Licensing Approaches for Telcos & Their Network Equipment Vendors
- Smart Home Opportunity: Balancing Customer Data & Privacy
This paper discusses the rise of Diameter and benefits of Diameter Protocol.
- Conducting The Orchestration – Order Management at the Speed of Business
- Toward a Converged Network Edge
- Beyond Spam – Email Security in the Age of Blended Threats
- 6 Important Steps to Evaluating a Web Filtering Solution
- The Expertise to Protect You from Botnet and DDoS Attacks
- Seeing is Believing – Bridging the Order Visibility Gap
Service providers are under tremendous pressure to turn up new services faster then before and, at the same time,
to do it at less expense - and intra-office fiber is one of the biggest challenges in terms of both cost and service
From the Blog
Join the Discussion
Get more out of Connected Planet by visiting our related resources below:
Connected Planet highlights the next generation of service providers, as well as how their customers use services in new ways.Subscribe Now