Time Warner Telecom Thursday announced that it is acquiring Xspedius Communications for $531.5 million in cash and stock.
With the acquisition Time Warner Telecom, which offers managed services including Ethernet, Internet access, VoIP, local and long distance voice services, significantly increases the number of markets it serves from 44 to 75.
Time Warner Telecom, which no longer has any affiliation with the Time Warner media company, has been expanding its base of VPN and Ethernet services rolling out enhanced QoS support and Virtual Private LAN Service (VPLS) offerings in recent years.
Xspedius operates metro fiber networks in 43 markets in 18 states primarily in the southern portion of the U.S. The service provider offers local voice, data and Internet access services to small and midsize business customers and other carriers.
From 2002 through 2005 Xspedius grew through acquisition. In 2002 it acquired competitive local exchange carrier (CLEC) E.spire Communications, in 2003 it acquired CLEC Mpower Communications and in 2005 it acquired ICG Communications expanding its network reach further in the south.
Time Warner Telecom says it expects Xspedius to generate $230 to $250 million in revenue in 2007. Xspedius is a privately held company.
The companies say they expect the deal to close within six months.
