PAETEC, TelePacific, euNetworks Each Close an Acquisition

Three deals closed earlier today, let’s take a quick look:

National CLEC and recent fiber convert PAETEC (news, filings) closed its purchase of XETA Technologies.  XETA sells, installs, and services communications products to the enterprise market, and its capabilities will add to PAETEC’s managed service portfolio.  XETA earned $90M in revenues and about $1.3M in profits during the twelve months ending January 31, which will take PAETEC’s revenue run-rate above $2B now following the first quarter boost from the inclusion of a full quarter of revenues from the Cavalier deal.

California-based CLEC TelePacific closed its acquisition of Orange County Internet Xchange (OCiX) yesterday as well.  The purchase brings another SAS 70 Type II facility under its umbrella to go with the one it bought from O1 last year.  The Santa Ana footprint covers 10,000 square feet now, which will be expanded to 18,000 in the near future.  TelePacific has been quite disciplined about its expansion strategy historically, making small strategic moves that bolster its regional presence.  One wonders when they might venture out of their western stronghold though.

Finally, euNetworks (news) closed its purchase of the German provider Lambdanet Communications Deutschland AG less than two weeks after announcing it.  The deal brings both additional metro assets and a live German intercity backbone into euNetworks portfolio, and will give euNetworks scale in some of their earlier stage German markets.  It also nearly doubles the company’s size, as Lambdanet was expected to bring in some €37M in revenues in 2011, and probably takes their annual run rate past the $100M mark.  Could this little company turn into a Zayo-style roll-up of lesser known fiber assets on the other side of the Atlantic?  I suppose it depends on whether those Singaporean backers are willing to put those deep pockets to work.

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Categories: Mergers and Acquisitions