The final purchase fell to $163 million from the projected $170 million, which could come as a blow to One Communications. The carrier has suffered downgraded ratings amid deteriorating financial and operational performance and was using the FiberNet sale to bolster its foundation.
For NTELOS, though, the transaction looks like a boon. NTELOS gets another 3,500 route miles of fiber network, plus about 30,000 customer accounts in Kentucky, Maryland, Ohio, Virginia and W. Virginia. The Virginia-based NTELOS says FiberNet will help it target large enterprises, government agencies and other operators.
NTELOS financed the deal using loans, credit and cash.
The NTELOS-FiberNet merger marked the second fiber-focused M&A to close this week. Earlier, Windstream wrapped its purchase of Q-Comm, which it bought for its subsidiaries fiber assets.