April 30, 2004 Rochester, NY -- American Fiber Systems, Inc. (AFS) will purchase the operating assets of Marietta FiberNet (MFN), an optical transport business based in Marietta, GA. MFN is a wholly owned subsidiary of the Marietta Board of Lights and Water, the municipal operating company that supplies utilities to the city of Marietta and surrounding areas.
The MFN acquisition should provide operational synergies and a growing source of revenue for AFS. The $12.2 million cash purchase of MFN is expected to close by June 30, 2004.
"The MFN unique fiber-optic network is highly complementary with the AFS strategy of owning core metropolitan fiber-optic assets and leveraging those assets through facilities-based competition as envisioned under the Communications Act of 1996. Operationally, MFN will help AFS operate more efficiently, resulting in added value for our shareholders and customers," said Dave Rusin, AFS president and CEO. "This investment also advances AFS's unique metropolitan fiber-optic facilities asset strategy and affirms our commitment to actively pursue growth opportunities through acquisitions."
MFN's fiber-optic network spans 450 route-mi covering Cobb County, Fulton County, Atlanta, and Norcross. Marietta FiberNet's reach encompasses many major business areas.
MFN is a full-service CLEC offering voice, data, and Internet services to business clients in the north metro Atlanta area. MFN was the first municipally owned telecom operation to be certified in Georgia. The MFN footprint supports an addressable market of over $4 billion in annual telecommunications services. Services provided by MFN include voice, data, optical Ethernet, fiber connectivity, and wholesale.
MFN operates a 24/7 network operation center that responds to service issues within 20 minutes and dispatches, if necessary, a technician on site with in 4 hours. Consolidated billing is provided for ease in reconciling services and managing expenses.
"Currently AFS does not see a need for changes to the operations of the business. We anticipate this transaction to be seamless for MFN's existing customer base." Rusin said. "We look forward to working with and learning from our new team members while continuing world class service with our new customers."