PAETEC has expanded again. PAETEC Holding Corp.(PAET) recently announced that it has signed an agreement to acquire Cavalier Telephone Corporation. The acquisition will add Cavalier’s wholly-owned subsidiary, Intellifiber Networks’ fiber-optic network to PAETEC’s existing service footprint.
Intellifiber Networks is 
one of the largest network providers in the nation with a high-capacity fiber network spanning nearly 17,000 route miles and representing over $2 billion of investment. The expansive 12,262 route mile intercity network spans the Midwest and Eastern U.S., as well as 4,689 route miles throughout several existing PAETEC metro areas, allowing for broad connectivity options for customers. Intellifiber offers scalable network solutions for service provider, enterprise, and government customers. Their offerings include private networks, low latency routing, SONET services, wavelengths, Ethernet, and data options.
The expanded PAETEC fiber network will encompass a combined 10,609 metro fiber-route miles and 37,023 total fiber-route miles and a combined 1,178 collocations. After the closing of this transaction, PAETEC expects to have a local presence in 86 of the top 100 Metropolitan Statistical Areas (MSAs). The transaction will further solidify PAETEC as one of the largest competitive local communication service providers in the United States
MarketWatch reports PAETEC Holding Corp. will acquire Cavalier Telephone Corporation in an all-cash $460 million transaction. Cavalier will become an indirect wholly-owned subsidiary of PAETEC Holding Corp. Cavalier is a privately held company whose majority owner is M/C Venture Partners, a private equity firm based in Boston.
“This planned acquisition of Cavalier fits our strategic plan to add both fiber assets and regional density to better serve our customers and realize increased network synergies, both in the local loop and long haul,” Arunas A. Chesonis, chair, and CEO of PAETEC told MarketWatch. “Cavalier’s fiber infrastructure, network assets, and corporate culture make it a perfect match for PAETEC and dramatically strengthen the company in the Eastern United States.”
Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedIn, Facebook, and Twitter. Email the Bach Seat here.