Monday, June 25, 2007

RCN to Acquire Westborough-based Neon Communications for $260 Million- Westborough, MA

RCN, a Virginia-based provider of cable television, high-speed Internet and phone services, said on Monday that it will pay $260 million in cash to acquire Westborough-based Neon Communications Group, a provider of network transport services in a 12-state area from Maine to Virginia. The deal, which already has been approved by both companies' boards, is expected to close late this year. RCN said that the acquisition will expand its network footprint and base of business customers, and has the potential to nearly double its commercial revenue and earnings. The company said that it plans to fund the purchase price with $250 million of debt financing from affiliates of Deutsche Bank. Neon operates a network of 4,800 route miles and over 230,000 fiber miles in the Northeast and Mid-Atlantic regions.


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