Data and voice services company RCN Corp has completed the acquisition of optical network bandwidth provider Neon Communications Group for $255m to enhance its telecommunications services.
The acquisition, which was originally announced in June 2007, resulted in the formation of a RCN Metro Optical Networks unit. The merged unit will provide telecom services to carriers and enterprise in mid-atlantic, Chicago and Northeast regions of the US. RCN will also tap into Neon’s fiber optic network of 4,800 route miles of the total 5,620 miles with 200 points of presence from Maine to Virginia.
Neon’s networks, facilities, service offerings and geographic distribution fit hand in glove with RCN, instantaneously expanding RCN Metro’s reach and establishing us as one of the most advanced, fiber-rich alternatives to incumbents in the metro markets we serve, said Peter Aquino, president and chief executive at RCN.
Earlier, in March 2006, RCN strengthened its communication services in the Northeastern region of the US by acquiring Consolidated Edison Communications, a telecommunications subsidiary of Consolidated Edison, Inc.
Neon derives 90% of its revenues from Sonet-and Ethernet-based transport services, in addition to 6% from dark fiber sales, and the remaining 4% from collocation services.
Source: ComputerWire daily updates