Axtel completes Avantel purchase to join the billion dollar club

5 Dec 2006

Mexico’s largest alternative telephony operator Axtel has completed the acquisition of rival Avantel for USD500 million in cash and debt from domestic financial group Banamex and MCI of the US (formerly WorldCom, now part of Verizon). As part of the deal, Axtel has absorbed Avantel debts of USD190 million. Avantel has struggled to make an impact in the local fixed line market, but does have a strong presence in the domestic and international long-distance sectors. Axtel says it now provides local and long-distance telephony, broadband and data services to more than 750,000 customers. On a pro-forma basis, the enlarged company’s annual revenues will exceed USD1 billion with estimated EBITDA of approximately USD300 million.

Mexico, Axtel