LAS VEGAS, N, COMPTEL SPRING CONFERENCE, February 28, 2007— Privately held American Fiber Systems, Inc. today announced that it has completed a ten million dollar transaction to acquire IDACOMM, the communications subsidiary of IDACORP (NYSE: IDA).
IDACOMM, is a fiber facilities-based competitive metro network provider, with operations focused in Nevada and Idaho, specializing in fiber-based transport services to both carrier and enterprise customers. IDACOMM’s fiber rich network includes over 45,000 local and long haul fiber strand miles with approximately 150 buildings on net. Adding these rapid-paced development cities of Las Vegas, NV, Reno, NV, Carson City, NV and Boise, ID opens new regional transport business to AFS.
“IDACOMM’s dense fiber optic network is highly complementary with the AFS strategy of providing our customers with a reliable fiber facilities-based alternative to AT&T, Qwest and Embarq” said Dave Rusin, AFS President & CEO. “This investment further substantiates our presence within middle markets nationwide, while solidifying our western regional position alongside our Salt Lake City properties.”
This transaction is EBITDA positive and accretive for American Fiber Systems. It follows AFS’ announcement late last year of their consolidation with USCarrier Telecom Holdings, LLC, a regional long haul network provider to second tier markets in the Southeastern United States.
Jon Yount, Senior Vice President of Operations for AFS noted, “We anticipate a fairly quick integration of the IDACOMM team. As a combined entity, the IDACOMM team brings an exceptional regional presence to AFS and we look forward to building upon their heritage of success.”
“Similar to our other markets, these cities are all experiencing high growth,” continued Yount, “The anticipated recurring revenue growth from our IDACOMM team is expected to exceed 40% by year’s end. We have exceptional and unique fiber assets which correspondingly allow us to deliver best-in-class optical broadband service and reliability.”
“The AFS vision is well aligned with the traditional Idacomm value system of physical network ownership, reliability and performance,” said Rich Coyle, Vice President of Western Operations. “We expect both our customers and employees will benefit from our best practices integration and it is great to be a part of a business whose core emphasis is telecommunications.”
American Fiber Systems was recently granted Atlantic ACM’s Best-in-Class Wholesale Metro Service Provider Award and Capacity Magazines Best US Metropolitan Provider. AFS scored well in both network quality and performance, as well as provisioning, customer service and sales representatives.
The closing of the transaction will be seamless to both AFS and IDACOMM’s existing customers. They will continue to receive the same high-quality customer support for their communications services.
About American Fiber Systems
American Fiber Systems provides metropolitan fiber optic network infrastructure and wholesale transport services to carriers and large enterprises. AFS enables it’s customers to easily and reliably connect to a city’s most important points of communications presence, including ILEC central offices and wire centers; CLEC PoPs; Internet Service Provider (ISP) and data center locations; Inter-exchange “carrier hotels;” wireless providers and cable company head ends; and Fortune 1000 companies. AFS has deployed over 1,200,000 miles of high-capacity, high-bandwidth metropolitan fiber optic cable since 2000 in several cities, including Atlanta, GA, Boise, ID, Carson City, NV, Cleveland, OH; Jacksonville, FL, Kansas City KS/MO; Las Vegas, NV, Lenexa, KS, Marietta, GA, Minneapolis, MN, Mobile, AL, Norcross, GA, St. Paul, MN, Nashville, TN, Overland Park, KS, Panama City, FL, Pensacola, FL, Reno, NV ,Salt Lake City, UT, and Tallahassee, FL. AFS has over 500 capacity enabled on-net buildings and supports an addressable market teledensity of over $9 billion in annualized telecommunications services. American Fiber Systems is a privately held venture-backed company.
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"I have to say, its been a pleasure working with American Fiber for this move. You guys have been on the ball every step of the way. Now if only Bell South worked like that... Thanks for everything."
