Computer business communications provider Time Warner Telecom Inc. announced that it would be acquiring telecommunications provider Xspedius Communications, LLC in a $531.5 million deal. Accordint the the deal, Time Warner will pay $212.5 million in cash and $319 million in stock to Xspedius, but will not accept any of the company’s outstanding debt. The deal will be done within the next six months, assuming typical closing procedures.
Computer business Time Warner Telecom offers networking solutions to 22 states worth of businesses and organizations in the United States. It provides data and Internet access, local and long distance voice services for long distance companies, wireless companies and other enterprise organizations.
Xspedius is based in Missourri and provides services in communications to enterprise businesses and customers of carriers. Among its offerings are metro Ethernet, local and long distance voice, data and Internet access services and other telecommunications items to 43 different markets across the United States and D.C.
Time Warner is predicting that Xspedius will alone create approximately $230 million to $250 million of revenue in 2007. The purchase of the company by the computer business will expand the reach of Time Warner and give it a larger national presence.
For the full year of 2007, Time Warner Telecom expects Xspedius' stand-alone operations to generate about $230m to $250m of revenue, Time Warner said in a statement. Time Warner Telecom, based in Littleton, CO started in 1993 as an outgrowth of Time Warner Cable and in 1997 began to deliver business services. The computer business company is now totally separate from Time Warner Cable and has been since 1999.
Added By: Computer Consulting 101