OnFiber Communications acquires assets of Sphera Optical Networks
May 6, 2002--OnFiber Communications Inc. recently announced it has acquired network assets and customer contracts of Sphera Optical Networks Inc. for approximately $2.3 million as part of Sphera's reorganization filing under Chapter 11.
OnFiber Communications Inc. recently announced it has acquired network assets and customer contracts of Sphera Optical Networks Inc. for approximately $2.3 million as part of Sphera's reorganization filing under Chapter 11. The acquisition will give OnFiber access to four new metropolitan markets, an expanded customer base, and more than $400,000 of additional monthly revenue. With this acquisition, OnFiber will extend its network reach to ten markets: Atlanta, Chicago, Dallas, Houston, Los Angeles, New York City, Philadelphia, San Jose, Seattle and Washington, D.C.
"This purchase is a natural progression for OnFiber's business strategy. We will be able to cost-effectively expand our network footprint to penetrate new markets and offer our customers more options," contends Danny Bottoms, president and chief executive officer of OnFiber. "The OnFiber team is committed to creating strong relationships with Sphera's customers and assuring no interruptions to their business operations."
Through the purchase of Sphera metro optical networks, OnFiber secures access to four new markets: Atlanta, Chicago, Los Angeles, and New York City, and augments its existing Washington, D.C. market. This purchase will expand OnFiber's traffic aggregation points from 32 to 53, significantly increasing the connectivity options in the metro core. Because of the companies' synergies, the integration of the Sphera assets into OnFiber's network will be seamless and will enable OnFiber to expand within the new markets immediately.
"Acquiring assets in this challenging market shows the viability of OnFiber as a metro access service provider," asserts Keith Mayberry, analyst at RHK Inc. (San Francisco). "Companies like OnFiber that are able to expand their networks and obtain new customers by purchasing distressed assets will be well positioned once the market turns around."
For more information about OnFiber Communications (Austin, TX), visit the company's Web site at www.onfiber.com.