INTERMEDIA COMMUNICATIONS TO ACQUIRE FIBERNET; Acquires CAP Operations in Four Southeastern States.TAMPA, Fla.--(BUSINESS WIRE)--January 30, 1995--Intermedia Communications of Florida, Inc. (Nasdaq/NM:ICIX), the leading provider of competitive access communications
Access Communications Co-operative Ltd. services in the Southeast, today announced that it has agreed to acquire FiberNet USA and FiberNet Cincinnati, a fiber-based competitive access provider. As a result of the acquisition, Intermedia Intermedia - A hypertext system developed by a research group at IRIS (Brown University). will acquire fiber optic networks in Cincinnati, Ohio “Cincinnati” redirects here. For other uses, see Cincinnati (disambiguation). Cincinnati is a city in the U.S. state of Ohio and the county seat of Hamilton County. , and Raleigh/Durham/Research Triangle Park, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. ; and networks under development in St. Louis, Missouri, and Huntsville, Alabama Huntsville is the county seat of Madison County, Alabama. Huntsville is the largest city in northern Alabama in a region of a half-million people, with the city proper having 168,132 residents (2006 estimate). . Intermedia will issue 694,000 shares of Intermedia common stock and a $1.2 million convertible note and will assume approximately $5 million in debt as consideration for the acquisition. Completion of the transaction is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent customary conditions, including regulatory approvals, and is expected to close within the next two weeks. Santo Petrocelli, Sr., director and chairman of FiberNet, will become a director of Intermedia. "Mr. Petrocelli and his company are veterans to the competitive access business and bring tremendous experience to Intermedia," said David C. Ruberg, chairman and chief executive officer of Intermedia. Petrocelli is chairman and chief executive officer of Petrocelli Electric, a primary fiber optic contractor to the CAP industry, the ninth largest cable TV contracting firm in the nation, and the largest independent electrical contracting firm in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . Ruberg added, "This acquisition is an important step in achieving our mission to be the premier full-service telecommunications provider in the Southeast, providing end-to-end connectivity End-to-end connectivity is a property of the Internet that allows all nodes of the network to send packets to all other nodes of the network, without requiring intermediate network elements to further interpret them. It was for the first time implemented in the CYCLADES-network. to business users. FiberNet's operations are in some of the most attractive markets in the country. Ohio offers a favorable regulatory environment, and FiberNet has a distinct competitive market advantage there as a result of specific franchise and operating agreements that have been negotiated and are in place. It also has one of the most dense traffic patterns in terms of voice, data and video usage. The Raleigh/Durham/Research Triangle area is the fastest growing area in the Southeast. It features the capital of North Carolina Noun 1. capital of North Carolina - capital of the state of North Carolina; located in the east central part of the North Carolina Raleigh NC, North Carolina, Old North State, Tar Heel State - a state in southeastern United States; one of the original 13 with its associated governmental agencies and a number of major universities, and continues to attract national and international businesses." The FiberNet networks comprise a total of 75 route miles The number of miles that are spanned by a telecommunications network. It does not include combined wire mileage due to multiple wires or fibers within a single cable or by overlapping segments, just the total geographic distance between cities or other terminal points. and 22 buildings in the business districts of Cincinnati and the Raleigh/Research Triangle markets. The Huntsville and St. Louis networks currently under construction and development will comprise 40 and 198 route miles, respectively. With today's announcement, Intermedia will have fiber optic ring networks in operation or development in 10 cities in five southeastern states. In addition, Intermedia offers frame relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. and extended network services in more than 300 cities throughout the U.S. and internationally. "This acquisition gives us the opportunity to aggressively extend our network and service offerings, grow our customer base, and garner greater market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" for frame relay services throughout the Southeast," explained Ruberg. "FiberNet's network cities are strategically located and offer ideal interconnection points with other service providers. We intend to integrate FiberNet's seasoned management expertise and strong franchise development skills to grow these networks as quickly as possible. The acquisitions of FiberNet and Phone One are strong complements to our existing business and our aggressive expansion program." On October 27, 1994, Intermedia reported record revenue of $9.0 million for the first nine months of 1994, up 54% from $5.9 million for the same period in 1993. The Company expects to report fourth quarter and 1994 results in February. Intermedia provides customers with a competitive alternative to the local telephone companies in Florida and the Southeast for voice, data and video services using the Company's extensive fiber optic system and its multi-city extended frame relay network. Intermedia currently has interconnected fiber networks in Orlando, Tampa, Miami, Jacksonville, St. Petersburg and West Palm Beach, offering route diversity, multi-vendor security, high-quality transmission and sophisticated broad bandwidth products. The Company also provides specialized telecommunications services to customers throughout the U.S. and internationally. CONTACT: Intermedia Communications of Florida, Inc. Barbara Samson, 813/621-0011 |
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