Consolidated Edison Inc., the New York power company, said today it has agreed to sell its telecom subsidiary to RCN Corp. for approximately $32 million.
RCN said buying Consolidated Edison Communications Holding Company Inc. (CEC) will bolster its fiber services to businesses, expand its residential reach in the northeast and more than double its annual commercial revenue. CECs fiber-optic network provides managed data transport services, custom networks, local and long-distance voice services and Internet services.
The deal also adds 193 wired buildings to RCNs network, bringing to 750 the total number of buildings it serves in the region between Washington and Boston.
The companies expect to receive regulatory approvals and close the acquisition in early 2006.
Morgan Stanley acted as the principal financial advisor to Con Edison on the transaction.