Lightyear Network Solutions has completed the acquisition of SouthEast Telephones business assets. The transaction is valued at approximately $7.2 million.
For the six months ending June 30, 2010, SouthEasts revenue was $16.4 million and Lightyears revenue for the same period was $22.5 million, resulting in a combined, annualized run-rate revenue of $77.8 million for 2010 ($76 million net of pro forma adjustments related to intercompany transactions).
We are very pleased that SouthEast Telephone is now a part of the Lightyear family,” said J. Sherman Henderson III, CEO of Lightyear Network Solutions. We expect this acquisition to be immediately accretive to EBITDA and add significantly to our revenue. The transaction is consistent with our objective to increase shareholder value through targeted acquisitions that positively contribute to our earnings and the economies of scale of our products and services, as well as through organic growth driven by our highly motivated authorized sales agents.”
The transaction is part of Lightyears strategy to rapidly scale its core business through a combination of acquisitions of small- to mid-sized telecommunications providers and organic growth generated from its large number of authorized agents who sell local service in 44 states and long-distance service in 49 states.
SouthEast, which is based in Pikeville, Ky., services approximately 31,000 lines and is a provider of voice and data telecommunications products and services, including local and long-distance phone service and DSL. Its customer base consists primarily of residential customers.
Carla Reichelderfer has been appointed as president and general manager of Lightyears SouthEast subsidiary. Reichelderfer had been with SouthEast since 2008 having CFO and COO responsibilities at different times during her tenure there.
We are pleased that Carla Reichelderfer has agreed to join the Lightyear family and look forward to working closely with her as she leads the team at SouthEast Telephone,” said Stephen M. Lochmueller, president of Lightyear Network Solutions. Lightyear and SouthEast together look
forward to serving the residential and business customers of Eastern Kentucky who will benefit from our integrated product offering of telecom services and products.”