Paetec-Cavalier merger to create USD2bn fibre network operator

17 Sep 2010

US fibre-optic network operator Paetec has agreed to buy a controlling stake in fellow fibre carrier Cavalier Telephone for USD460 million from private equity firm M/C Venture Partners, adding around 17,000 route miles to its fibre network and near-doubling its colocation sites to 1,178. If the deal receives regulatory approval – expected within six months – Paetec will operate a combined total 37,000 fibre route miles including 10,600 metro fibre-route miles, and will have a presence in 86 of the top 100 US metropolitan areas, whilst the enlarged company will have annual revenues of nearly USD2 billion. Cavalier’s Intellifiber Networks unit operates inter-city infrastructure across Midwest and Eastern states.

United States