RCN Closes Neon Deal

RCN closes acquisition of NEON Communications

November 13, 2007

1 Min Read

HERNDON, Va. -- RCN Corporation (NASDAQ: RCNI - News), a leading provider of video, data, and voice services to residential, small business and commercial customers, has closed its acquisition of NEON Communications Group, Inc. (AMEX: NGI - News). The cash purchase price paid was $5.15 per share of NGI common stock, for a total consideration of approximately $255 million. RCN funded the transaction with a combination of proceeds from an additional $200 million term loan under its existing senior secured credit facility, a draw of approximately $25 million under its existing $75 million line of credit, and cash on hand.

With the acquisition complete, the combined RCN Business Solutions-NEON unit will become RCN Metro Optical Networks, a leading facilities-based provider of telecommunication services to enterprises and carrier customers in the Northeast, Mid-Atlantic and Chicago regions.

“NEON adds a strategic scaling opportunity in our RCN footprint,” commented Peter Aquino, president and chief executive officer of RCN. “NEON’s networks, facilities, service offerings and geographic distribution fit hand in glove with RCN, instantaneously expanding RCN Metro’s reach and establishing us as one of the most advanced, fiber-rich alternatives to incumbents in the metro markets we serve. We welcome our new customers and team members to RCN.”

RCN Metro president Felipe Alvarez, stated, “Our main objective during this transition phase is to ensure continued superior service and support for our customers while maintaining our strong sales momentum. Given the two companies’ similar operating philosophies, customer bases, and the talent and experience of the combined teams, we anticipate a successful integration process that quickly leverages our combined strengths and best practices into a powerful unified organization.”

NEON Communications Inc.

RCN Corp.

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