ST. PETERSBURG, Fla., Jan. 26, 2006 – Progress Telecom announced today the sale of its fiber-optic network in the southeast United States to Level 3 Communications Inc. (Nasdaq:LVLT). for approximately $175 million in cash and stock.
Progress Telecom, formed just over two years ago through the merger of EPIK Communications and Progress Telecom, was jointly owned by Progress Energy and Odyssey Telecorp Inc. (located in Palo Alto, Calif.). Progress Telecom operates fiber-optic and wireless networks in Florida, Georgia, South Carolina and North Carolina and has annual revenue of about $70 million.
The acquisition is expected to contribute $30 to $35 million annually in free cashflow to Level 3 after synergies with the company’s existing fiber operations. Progress Telecom will retain its wireless infrastructure, attachment and cell tower division.