Conversent Communications and FiberNet Announce Merger.MARLBOROUGH, Mass. & CHARLESTON, W.Va. -- Conversent Communications, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and FiberNet, LLC, two of the nation's leading facilities based Integrated Communications Providers (ICP (1) (Internet Cache Protocol) A protocol used by one proxy server to query another for a cached Web page without having to go to the Internet to retrieve it. See CARP and proxy server. ), today announced their intent to merge in a stock transaction. Upon completion of the merger, the companies will serve 51,000 customers and employ more than eight hundred people in ten states throughout the Northeast and Mid-Atlantic regions. "Rob Shanahan and Jack Pottle pot·tle n. 1. A pot or drinking vessel with a capacity of 2.0 quarts (1.9 liters). 2. The liquid contained in this type of pot or drinking vessel. 3. An old English liquid measure equal to 2.0 quarts (1.9 liters). have done terrific jobs in managing Conversent and FiberNet, respectively," said Bob Fanch, Chairman and Founder of Conversent and FiberNet. "The companies have been generating meaningful growth and substantial free cash flow for two years and we are very pleased to be able to bring these two very successful businesses together. This combination will allow us to create additional value through deployment of existing and new services to businesses operating in our region, along with positioning the joint company for consolidation in our markets." Conversent and FiberNet will retain their respective brand identities in the markets they currently serve and customers of both companies will not experience any changes in operations, sales, service or billing. Additionally, the companies will maintain all regional office locations, which will ensure continued local customer sales and service, as well as their commitment to the local communities served. "This is an ideal opportunity for Conversent and FiberNet. It is clear that this merger will strengthen us by creating financial mass," said Robert Shanahan, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Conversent. "The combined cash flow of our companies will provide greater opportunity for continued expansion, and enhance more extensive deployment of services such as Wi-fi and VoIP." "This merger is exciting for Conversent and FiberNet as well as for our customers across the Northeast, West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. , Pennsylvania and Maryland," said Virgil Parsons, president and COO of FiberNet. "Conversent and FiberNet are dedicated to providing innovative, quality products with a level of personalized service that cannot be matched. This merger will allow us to better serve our communities and will strengthen our ability to ensure that customers who have been traditionally underserved have access to the most advanced telecommunications services." Conversent and FiberNet offer a full compliment of local, long distance, and data services, including VoIP, VPN (Virtual Private Network) A private network that is configured within a public network (a carrier's network or the Internet) in order to take advantage of the economies of scale and management facilities of large networks. , DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary , and Internet, to a range of business customers as well as government and educational institutions. In addition, FiberNet provides voice and Internet services to the residential market. Collectively, the companies will serve approximately 300,000 local access lines, with over 3,900 miles of state-of-the-art fiber optic network, 7 voice switches, and 196 co-locations in 10 states. The companies had combined revenue of $205M and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $66.3M in 2004, which represented increases of 19% in revenue and 43% in EBITDA over 2003 results. The merger is expected to be completed in March 2005. About Conversent Communications Conversent is a facilities-based communications provider that offers businesses a broad portfolio of voice, data and Internet Services that are bundled to meet the specific needs of each customer. Recognized as one the Northeast's premiere telecommunications providers, Conversent provides its clients innovative and flexible communication solutions backed by a dependable network and a knowledgeable and dedicated customer support staff. Conversent was founded in 1998 by cable entrepreneur Robert Fanch and Conversent's president and CEO, Robert Shanahan. Seaport Capital Seaport Capital is a New York City-based private equity fund that invests in media, communications & business and information services companies. Most of the properties they own are concentrated in medium and small markets, ranging from television stations to cable operators, as is an investor in Conversent. More information is available at www.conversent.com. About FiberNet FiberNet, L.L.C. was formed in West Virginia in 1997 and is affiliated with The Blackstone Group Blackstone Group L.P. (NYSE: BX) is a prominent private equity and investment management firm founded in 1985 by Peter G. Peterson and Stephen A. Schwarzman. The company is based in New York City, in River House on Park Avenue at Fifty-first Street, with offices in Atlanta, , Charter Communications Charter Communications NASDAQ: CHTR is an American company providing cable television, high-speed Internet, and telephone services to more than 5.7 million customers in 29 states. It is the third-largest publicly traded cable operator in the U.S. , and Fanch Communications, Inc. Since its inception, FiberNet has proven itself to be the statewide leader as a competitive telecommunications service provider A Telecommunications Service Provider or TSP is a type of Communications Service Provider that has traditionally provided telephone and similar services. This category includes ILECs, CLECs, and mobile wireless companies. . FiberNet provides telephone, high-speed voice and data and networking services to businesses, educational institutions and state government agencies pairing world class technology with superior and personalized customer service. For further information about FiberNet LLC, visit our web site at www.wvfibernet.net. |
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