American Fiber Systems acquires IDACOMM, expands network footprint
FEBRUARY 28, 2007 -- Adding the cities of Las Vegas, Reno, and Carson City, NV, as well as Boise, ID, from IDACOMM's operations area opens new regional transport business to AFS, the company says.
FEBRUARY 28, 2007 -- Privately held American Fiber Systems Inc. (AFS) (search for American Fiber Systems) has completed a $10 million transaction to acquire IDACOMM (search for IDACOMM), the communications subsidiary of IDACORP.
IDACOMM is a fiber facilities-based competitive metro network provider, with operations focused in Nevada and Idaho, specializing in fiber-based transport services to both carrier and enterprise customers. IDACOMM's fiber-rich network includes more than 45,000 local and long-haul fiber-strand miles with approximately 150 buildings on net. Adding the cities of Las Vegas, Reno, and Carson City, as well as Boise, opens new regional transport business to AFS, the company says.
"IDACOMM's dense fiber-optic network is highly complementary with the AFS strategy of providing our customers with a reliable fiber facilities-based alternative to AT&T, Qwest, and Embarq," says Dave Rusin, AFS president and chief executive officer. "This investment further substantiates our presence within middle markets nationwide, while solidifying our western regional position alongside our Salt Lake City properties."
According to Jon Yount, senior vice president of operations, "Similar to our other markets, these cities are all experiencing high growth." He continues, "The anticipated recurring revenue growth from our IDACOMM team is expected to exceed 40% by year's end."
The transaction is EBITDA positive and accretive for American Fiber Systems. It follows AFS's announcement late last year of its consolidation with USCarrier Telecom Holdings LLC, a regional long-haul network provider to second-tier markets in the southeastern US. AFS says that the closing of the acquisition will be "seamless" to current customers of both companies.
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