Data Voice Solutions

Merger is the name of the game in the telecommunications industry and this latest announcement from NuVox Communications and FDN Communications (News - Alert) is just par for the course. The two companies announced that they have signed a definitive agreement to merge.

 

Following a transition period, the two privately held facilities-based communications providers will operate under the name NuVox Communications, and will provide IP-based communications solutions including voice, data connectivity and storage, private networking, Web hosting, and security services to business customers across the Southeast and the Midwest. The newly combined organization will have more than 90,000 customers, 1 million voice and data lines in services and annual revenues exceeding $500 million.

 

"Combining NuVox and FDN Communications makes excellent strategic sense given our similar philosophies about customers-that is, a keen focus on the business market evidenced by our suite of products and services aimed specifically at that market and our unwavering commitment to proficient, 'high-touch' customer service," stated Jim Akerhielm, Chief Executive Officer of NuVox Communications, in a statement.

 

"The two companies have complementary target customers, overlapping geographic markets in the fast growing Florida and metropolitan Atlanta areas, and efficient, customer-centric operations positioning the new company to be a leading provider of communications solutions for business customers."

 

Mike Gallagher, Chief Executive Officer of FDN Communications, contributed that a larger total footprint and deeper customer penetration in key markets is expected to position NuVox for further growth. Both companies have a proven track record and have posted strong financial results. Together, the new combined enterprise will build on the strengths and experience of each company.

Individuals from both FDN and NuVox will form the management team for the new enterprise. Akerhielm is expected to serve as CEO, with Gallagher in the position of President of Strategic Markets.

 

According to incoming NuVox Board member Jamie Greene of KKR, both NuVox and FDN has made tremendous investments in technology and the build out of their networks. They are now able to fully implement Voice over Internet Protocol (VoIP) technology as a result, which will enable their customers to take advantage of a richer set of communication services and applications as well as significantly enhanced broadband connectivity.

 

Greene went on to add that beyond the ability to better leverage each company’s investment in technology and the clear benefits to customers, the combination of the NuVox and FDN networks allows for a number of operational and financial efficiencies which can lead to improved profitability and accelerated growth.

 

"We are excited to bring together the superb teams of employees of both companies. I believe the people of both NuVox and FDN Communications are the reason each company has been so successful, and as a combined team, we can achieve even more," added Akerhielm.

 

The transaction combining the two companies is expected to close in June 2007. The combined headquarters will be located in Greenville, South Carolina, with extensive sales, customer and technical operations both there and in Maitland, Florida. Both companies are dedicated to ensuring that customers will not experience changes to their existing service agreements as a result of the merger.

Whether or not the newly combined company will be able to deliver on that promise remains to be seen. However, customers should be used to mergers, acquisitions and changes and any impact that could be felt may not have any negative affect on the preservation of the base.

 

 

Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.