Dec, 2003 : US LEC to Acquire FASTNET for $8.5 Million

📅 December 5, 2003 - US LEC Corporation (uslec.com), a telecommunications carrier based in Charlotte, North Carolina, said today that its bid to purchase substantially all the assets of FASTNET Corporation (fast.net -> hostinger.com), an Internet and Web hosting service provider based in Bethlehem, Pennsylvania, has been approved by the United States bankruptcy court for the Eastern District of Pennsylvania.

The company said the acquisition is for the broadband and dial-up Internet access, colocation and managed hosting units of FASTNET. US LEC said it would also acquire two data centers in Eastern Pennsylvania.
According to US LEC, the bid is worth $8.5 million in addition to the assumption of certain liabilities.
US LEC said the acquisition will add $24 million in annual revenue, including 2,100 business customers with dedicated Internet or data center services, as well as an additional 26,000 shared Web hosting and dial-up Internet customers.
"This transaction solidifies and enhances our current and future plans for data product and service growth," said Jeff Blackey, senior vice president for US LEC. "In addition to the ISP and broadband data services, the FASTNET product suite provides extensive value-added data services including advanced technical support, dedicated and shared Web hosting, colocation, data storage/disaster recovery and managed services to provide extensive monitoring of the customers' services and network."
Mike Robinson, executive vice president and chief financial officer for US LEC said the acquisition was funded by the proceeds of the company's recent private placement of common stock that raised $10 million. According to Robinson, the final US LEC bid of $8.5 million includes $6 million in cash, $1 million of US LEC Class A common stock, and a $1.5 million note, along with the assumption of certain liabilities.
"We are very excited about the addition of FASTNET to US LEC. We gain two data centers and add new and improved data and Internet services to our product suite, which we plan to offer to our customers," said Aaron Cowell, president and CEO for US LEC. "We also significantly grow our market share in Pennsylvania, New York and New Jersey with the addition of nearly 30,000 FASTNET customers."
Cowell also said that the company, which has added 80 data and customer care personnel with the acquisition, intends to further expand its voice, data and Internet services in its operating territory.
FASTNET was delisted from the Nasdaq in June.