August 7, 2002 -- Metro connectivity provider OnFiber Communications, Inc. has acquired a majority of the network assets and customer contracts of Telseon, Inc., a leading competitor, the two companies said Tuesday.
The acquisition will expand OnFiber’s network from 10 major U.S. metro markets to 12, adding Denver and Miami. The company valued the assets at $85 million.
OnFiber also picks up approximately 90 new customers, including Cable & Wireless USA, eBay, Internap and Williams Communications. OnFiber said the deal will boost the total value of its customer contracts by 40 percent, to $39 million.
In May of this year, OnFiber acquired the majority of the assets of Sphera Optical Networks after Universal Access backed out of an agreement to buy Sphera.
“OnFiber is continuing to execute on its plan of financially conservative growth in this uncertain market,” said Danny Bottoms, president and CEO of OnFiber “The integration of the networks will bring great value to the customers of both companies by expanding into new metros, deepening the footprints in current metros and broadening our service offerings.”
OnFiber’s existing customers include Broadwing, Qwest, Telia International Carrier, Microsoft, Google, Yahoo!, Electronic Arts and Cisco Systems.
“OnFiber has demonstrated staying power by investing wisely in situations that create new and immediate revenue streams,” said Jon Cordova, directing analyst, Infonetics Research. “Acquiring the networks of Telseon is another step in the right direction for OnFiber as they continue to take a leadership position in the metro optical arena.”
OnFiber Communications, Inc. is based in Austin, Texas and operates fiber optic networks in Atlanta, Chicago, Dallas, Denver, Houston, Los Angeles, New York City, Miami, Philadelphia, San Francisco, Seattle and Washington D.C. Privately held, OnFiber is backed by leading firms such as Kleiner Perkins Caufield & Byers, Incepta, Bear Stearns Merchant Banking, Telesoft Partners, Amerindo Investment Advisors, and GE Capital.