Just three months shy of their initial merger announcement, NuVox Communications and FDN Communications on Wednesday closed the deal.
Terms were not announced, as both companies are privately held. They have said their combined annual revenue will surpass $500 million, roughly the same amount claimed by recently merged Broadview Networks and InfoHighway Communications.
FDN and NuVox will operate under the NuVox name. Jim Akerhielm, CEO of NuVox, will keep that position. Mike Gallagher, former CEO of FDN, takes on the role of president of strategic markets.
The combined company will specialize in IP communications, including voice, data, storage, private network and Web hosting. They will serve businesses in 16 states throughout the southeast and Midwest.
NuVox will go head-to-head with PAETEC/ US LEC and make substantial inroads in Florida and Georgia, thanks to the FDN acquisition. Commissions and operations will be business as usual for partners, Gallagher told PHONE+ in March. In fact, the new NuVox only will rely on agents more. Its hard selling out there, he said. We need every bit of distribution that we can get. We value [partners] and we absolutely need their help.
Other executives for the new NuVox include Stephen H. Shoemaker, CFO; Charles J. Norris, COO; and Riley M. Murphy, general counsel and secretary.
The board of directors will be David Solomon, chairman of the board; Akerhielm; Gallagher; Jim Wade of MC Venture Partners; Robert Savignol of MC Venture Partners; Jim Fleming of Columbia Capital Partners; James H. Greene Jr. of Kohlberg Kravis Roberts and Co.; and Scott Perper of Wachovia Capital Partners.
NuVox said customers wont see any changes in their existing service agreements because of the mergers close.
The headquarters will be in Greenville, S.C. Sales, customer service, and technical operations will be in Greenville, S.C., and Maitland, Fla.