Integra spins out Electric Lightwave

Integra Telecom Holdings, Inc. has decided to split into two companies by spinning out fiber-optic network services provider Electric Lightwave. Electric Lightwave will remain a fiber-based network services provider focused on the western U.S., while Integra will maintain competitive and incumbent operations in Minnesota, North Dakota, and Colorado. Integra also will manage all small business customers in Electric Lightwave's markets.

Integra Telecom Holdings, Inc. has decided to split into two companies by spinning out fiber-optic network services provider Electric Lightwave. Electric Lightwave will remain a fiber-based network services provider focused on the western U.S., while Integra will maintain competitive and incumbent operations in Minnesota, North Dakota, and Colorado. Integra also will manage all small business customers in Electric Lightwave's markets.

Approximately 17% of present combined employees will become employees of Integra. Integra will leverage certain centralized Electric Lightwave corporate functions (e.g., finance/accounting, legal, human resources, and technology) through intracompany services arrangements.

"The underlying operating model, employee capabilities, financial profile, and capital requirements in the fiber infrastructure business are increasingly different from those necessary in today's market for SME-focused communications services providers," said Jesse Selnick, CFO. "Through operational and financial separation, we are focusing our capital investments and aligning human resources toward the attractive growth opportunities at Electric Lightwave, including the continued investment in high-return, success-based capital projects."

Integra initially split its operations into the Electric Lightwave and Integra units in early 2015 (see "Integra adds Electric Lightwave, Integra Business fiber network units"). Integra then bolstered the Electric Lightwave unit with the acquisition of opticAccess (see "Integra to acquire opticAccess for West Coast fiber-optic network"). In its new form, Electric Lightwave will serve more than 5,400 large enterprise customers, wholesale carriers, web content providers, government organizations, and educational institutions. Its fiber-optic network footprint includes more than 8,000 miles of long-haul fiber that links 23 markets. The company operates more than 4,000 miles of metro fiber in those markets. Those networks connect more than 3,000 commercial buildings, 125 cellular towers, and 100 data centers.

Marc Willency will serve as CEO of Electric Lightwave. Brady Adams, current senior vice president and general manager of Integra, will lead the Integra operations. The corporate entity above the two units also will be renamed Electric Lightwave. Bob Guth has been named executive chairman of Electric Lightwave's board, with Paul Sunu named vice chairman as well as chairman of the Audit Committee. Selnick also has been elected to the board.

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