Time Warner adds last-mile provider
July 28, 2006Time Warner Telecom will pay $531 million for Xspedius, a last-mile provider of business broadband voice and data services.
The transaction announced Thursday brings the Time Warner unit a provider of comprehensive broadband services with a presence in 18 states and Washington, D.C.
"This strategic acquisition further expands our network reach and market density," said Time Warner Telecom Chairman Larissa Herda. "It increases the number of markets we serve from 44 to 75, and enhances our ability to further fuel our enterprise growth."
Herda added that it expects Xspedius to rake in about $240 million in revenue next year and will also bring her company cost savings through existing operations.
She said Xspedius' success illustrated the view that business customers will continue to seek out broadband providers that can offer a full menu of voice and data services.
Copyright 2006 by United Press International
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