OnFiber Communications acquires Telseon assets worth $85M, extending network to 12 major U.S. metros and adding more than 90 new customers

August 6, 2002

1 Min Read

AUSTIN, Texas -- OnFiber Communications, Inc., a leading telecommunications service provider of metro optical connectivity, today announced that it has acquired a majority of the network assets and customer contracts of Telseon, Inc., a leading competitor. The acquisition will expand OnFiber's network from 10 major U.S. metros to 12, adding Denver and Miami. The acquisition also increases the total value of OnFiber's customer contracts by 40 percent, to $39 million."OnFiber is continuing to execute on its plan of financially conservative growth in this uncertain market," said Danny Bottoms, president and CEO, OnFiber. "The integration of the networks will bring great value to the customers of both companies by expanding into new metros, deepening the footprints in current metros and broadening our service offerings."As a result of the acquisition, OnFiber will add approximately 90 new customers including Cable & Wireless USA, eBay, Internap and Williams Communications. OnFiber's existing customers include Broadwing, Qwest, Telia International Carrier, Microsoft, Google, Yahoo!, Electronic Arts and Cisco Systems. Additionally, OnFiber's traffic aggregation points double to more than 100, significantly increasing connectivity options for its customers. The combination of OnFiber's wavelength and SONET services with Telseon's Ethernet services will provide customers with the most comprehensive suite of metro optical services found in the industry today.In securing its position as the front-runner in the metro optical services market, OnFiber now provides network connectivity to the top five Internet properties, as well to the majority of the long-haul backbone providers in North America. OnFiber's leadership position is evidenced by the fact that nearly two-thirds of its customers are repeat buyers. Furthermore, the asset acquisition improves OnFiber's financial benchmarks by shortening its timeframe to reach free cash flow positive. OnFiber Communications Inc.Telseon Inc.

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