lyns announced today that it has signed a multi-year carrier services contract with XO Holdings (news, filings). Via this agreement, Lightyear will be able to leverage XO's Dedicated Internet Access and Ethernet Private Line services as it expands its capabilities nationwide. Teaming up with XO's backbone seems like a logical move for Lightyear, as XO has been an aggressive wholesaler over the past few years. But I doubt it's exclusive, Lightyear has always partnered with a variety of carriers to serve its customer base.
Lightyear went public via a reverse merger earlier this year, and subsequently announced their intention to acquire their way to greater scale. Thus far they have agreed to acquire Southeast Telephone in rural Kentucky, but we haven't heard anything further. Ah well, these things take time. But because XO's densest assets lie in Tennessee which borders on Lightyear's Kentucky home turf, I wonder if that didn't give them some extra reason to work out this agreement.
Revenues in the second quarter were $11.3M, basically flat with the prior quarter. I'm still watching these guys to see where things settle down to.
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