EarthLink Completes ITC^DeltaCom Acquisition

ATLANTA,Dec. 8, 2010 - EarthLink, Inc. (Nasdaq: ELNK) today announced that it has completed its acquisition of ITC^DeltaCom, Inc., a leading provider of integrated communications services to customers in the southeastern United States, in a transaction valued at approximately $524 million.

Under the terms of the merger agreement, ITC^DeltaCom (Deltacom) stockholders are receiving $3.00 in cash per each share of Deltacom common stock in the transaction. EarthLink is paying approximately $199 million in cash as part of the acquisition. EarthLink also is assuming approximately $325 million of Deltacom's senior secured notes.

With the close of the transaction EarthLink will begin integrating its New Edge Networks and EarthLink Business Services operations with Deltacom and will market the combined services under the 'EarthLink Business' brand name.

"With the addition of Deltacom's deep fiber assets and strong customer relationships, EarthLink is creating a leading IP infrastructure and services company. We are pleased to have gained the regulatory approvals required to close this transaction in just ten weeks. We've acquired a business that has meaningful revenue streams, strong gross margins and unlevered free cash flow that positions EarthLink for future strategic value creation," said EarthLink Chairman and Chief Executive Officer Rolla P. Huff. "Our new EarthLink Business division will offer a full complement of voice, data, mobile, and equipment services over a nationwide IP network with regional fiber density and favorable economics for any customer that has concentration in the Southeast region."

About EarthLink

EarthLink, Inc. (Nasdaq: ELNK) is a leading provider of Internet Protocol (IP) infrastructure and services to medium-sized and large businesses, enterprise organizations, and over 1.5 million residential customers across the United States. The company has been providing Internet access and communications services for decades and has earned an award-winning reputation for both outstanding customer service and product innovation. For consumers, EarthLink is a leading Internet Service Provider connecting people to the power and possibilities of the Internet. EarthLink Business(TM) provides voice, data, mobile and equipment services over a Southeast fiber network and MPLS-based services nationwide. For more information visit EarthLink's website

SOURCE EarthLink, Inc.



Louis Alterman,



More from Materials

All Topics