360networks acquires Group Telecom

Despite having just recently emerged from bankruptcy on November 12, 360networks this afternoon revealed it will acquire the assets of another bankrupt company, Group Telecom. Group Telecom is a facilities-based competitive provider serving the Canadian market.

Although terms of the deal were not disclosed today, they will be disclosed along with Group Telecom’s reorganization plan, which is expected to be released relatively soon.

“The acquisition makes a lot of sense for 360networks because there’s not a lot of overlap [between the two networks],” said a 360networks spokesman.

360network’s Canadian infrastructure consisted mainly of long-haul connectivity whereas Group Telecom has metro-based networks in Canada. Group Telecom offers voice and data services in 17 metro areas in Canada and in nine provinces.

The deal is subject to court approval but is expected to close by February 15, 2003.