M&A Journal: TelePacific, Limelight, iiNet

There were several M&A events in the past two days that are worth looking at:

TelePacific, a CLEC based in California, is buying the SMB customer base of neighbor O1 Communications, amounting to some 1000 customers.  Also switching hands in the deal is O1’s datacenter in Sacramento, which TelePacific will leverage to enhance its MPLS portfolio.  For its part, O1 will remain in the wholesale business.  TelePacific has found fertile ground with SMBs where other CLECs have not before, having bought the SMB customer base from PacWest back in 2004 – PacWest also retreated to a wholesale footing at that time.

Content delivery provider Limelight Networks (NASDAQ:LLNW, news, filings) took another step into the value added domain by buying Delve Networks, a privately-held provider of cloud-based video publishing and analytics services.  Delve’s portfolio adds to Limelight’s EyeWonder purchase last year, enabling them to further address the online video advertising segment.

And down under, Australian ISP iiNet is purchasing AAPT’s consumer business for $60M.  AAPT will now focus on its business customers, while iiNet adds over a hundred thousand broadband subscribers.  Meanwhile, AAPT’s Telecom New Zealand has also sold off its own 18.2% stake in iiNet for $63.7M – further shedding its presence in the Australian consumer market.

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Categories: CLEC · Content Distribution · Mergers and Acquisitions