PAETEC Holding set to acquire Cavalier Telephone

Merger mania is resuming like a NASCAR race given the green flag. PAETEC Holdings has stepped on the gas pedal by offering $460 million to purchase privately held Cavalier Telephone and add nearly 17,000 fiber route miles to its existing footprint.

Both PAETEC and Cavalier are primarily CLECs where their business services compete directly with cable's commercial offerings. The combined entity has the potential to become a greater threat because its high capacity fiber optic network is concentrated in Eastern and Midwest metro areas where the addition of a broadband video link would allow it to tap into a huge residential subscriber base.

The acquisition fits PAETEC's "strategic plan" to add fiber assets and regional density, said Arunas Chesonis, the company's chairman-CEO in a press release. For Cavalier, the acquisition means an opportunity to "take advantage of a combined network and resources that are unmatched in the industry and build upon a common culture that is singularly focused on the customer," said Cavalier's president and CEO Danny Bottoms.

For more:
- see this news release

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