Dec, 2001 : Choice One Completes Asset Purchase from FairPoint
📅 - Choice One Communications (choiceonecom.com), an integratedcommunications provider, announced that the company has completed thepurchase of certain assets from FairPoint Communications Solutions Corp(fairpoint.com).
On Nov. 7, 2001, the two companies announced a definitive agreement for thepurchase of certain assets with the purchase price to be paid in both cashand Choice One common stock. In accordance with the agreement, Choice Onepaid cash in the amount of $1.5 million and issued 2.5 million shares of newcommon stock. The new shares are subject to a one-year lock-up period.Choice One may issue up to 2 million additional shares contingent upon thetotal number of acquired lines in service at April 30, 2002 and the numberof those that are facilities-based.
"We moved quickly and completed this transaction just six weeks aftersigning the definitive agreement," said Steve Dubnik, chairman and CEO."This enables us to enter 2002 with our full attention on integrating theseassets into our existing operations and maximizing the value of thistransaction. Substantial progress has already been made on this front, asproject teams have begun to map out the billing migration and a plan toconsolidate common co-locations."
"Choice One now provides service in 30 second- and third-tier markets across12 contiguous states in the Northeast and Midwest; a service area unmatchedby any of our competitors. With this extensive footprint and our bundledvoice and data offering, we are uniquely positioned to enhance ourleadership position as the provider of choice for small and medium sizedbusinesses in these markets."
In addition to acquiring more than 40,000 business lines, Choice One alsoacquired selected co-location sites, a Siemens switch used to serve some ofthe acquired clients, and other switching equipment that can be re-deployedin the company's network. Additionally, Choice One paid $4.1 million cash toFairPoint Solutions, representing 85% of the retail accounts receivablebalance as of the transaction closing date.
On Nov. 7, 2001, the two companies announced a definitive agreement for thepurchase of certain assets with the purchase price to be paid in both cashand Choice One common stock. In accordance with the agreement, Choice Onepaid cash in the amount of $1.5 million and issued 2.5 million shares of newcommon stock. The new shares are subject to a one-year lock-up period.Choice One may issue up to 2 million additional shares contingent upon thetotal number of acquired lines in service at April 30, 2002 and the numberof those that are facilities-based.
"We moved quickly and completed this transaction just six weeks aftersigning the definitive agreement," said Steve Dubnik, chairman and CEO."This enables us to enter 2002 with our full attention on integrating theseassets into our existing operations and maximizing the value of thistransaction. Substantial progress has already been made on this front, asproject teams have begun to map out the billing migration and a plan toconsolidate common co-locations."
"Choice One now provides service in 30 second- and third-tier markets across12 contiguous states in the Northeast and Midwest; a service area unmatchedby any of our competitors. With this extensive footprint and our bundledvoice and data offering, we are uniquely positioned to enhance ourleadership position as the provider of choice for small and medium sizedbusinesses in these markets."
In addition to acquiring more than 40,000 business lines, Choice One alsoacquired selected co-location sites, a Siemens switch used to serve some ofthe acquired clients, and other switching equipment that can be re-deployedin the company's network. Additionally, Choice One paid $4.1 million cash toFairPoint Solutions, representing 85% of the retail accounts receivablebalance as of the transaction closing date.
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