 |
 |
 |
 |
 |
 |
 | ||
|
|
||
News Releases
New Edge Networks Pursuing Acquisitions of Broadband and Data Communications Providers
VANCOUVER, Wash. – (April 1, 2003) – New Edge Networks, a national broadband and data communications providers, today confirmed it is actively pursuing acquisitions of broadband and data communications businesses that incrementally add to its cash flow growth.
New Edge Networks placed classified ads in various telecommunications trade magazines and posted messages on Internet bulletin boards soliciting interest among communications companies that could add customers, network traffic, product set, or geographic reach. New Edge Networks primarily provides data and broadband services to business customers. Confidential expressions of interest can be sent via e-mail to: growth@newedgenetworks.com.
“This is a good time to be looking to acquire complementary businesses that are accretive to our cash flow or are an extension of our core data communications business,” said Dan Moffat, president and CEO of New Edge Networks. “Due to the tough times, many companies are looking to monetize their assets. We have achieved strong internal growth in each area of our business and are fortunate to be in a position of strength for aggressively pursuing acquisitions for capitalizing on opportunities.”
Backed by Goldman Sachs & Co., Accel Partners, Crosspoint Ventures, and Greylock, New Edge Networks has been acquiring and migrating customers in the midst of the economic downturn and telecom meltdown. Last year, New Edge Networks acquired the commercial division of AtHome Corp. in a bankruptcy sale as well as hundreds of business data customers from Cable & Wireless.
New Edge Networks raised nearly $400 million in invested capital since it was formed in June 1999 and began commercial operations in early 2000, weeks before the market downturn. It’s 2002 revenues almost tripled to $60.4 million from $21.2 million in 2001. Revenues for 2003 are on track to exceed $100 million. The company’s current debt is $38 million.
“Despite the telecom upheaval and economic downturn, we have stayed focused and successfully positioned New Edge Networks to capitalize on the growth opportunities in broadband and data communications, particularly in underserved small and midsize markets,” Moffat said. “We are on track to achieve cash flow positive in the second quarter of this year.”
With multi-service platform switches in more than 600 central office locations around the country, New Edge Networks offer customers a single source alternative for a wide range of better business broadband access options and managed services using various technologies, including DSL, Frame Relay, and ATM.
About New Edge Networks
New Edge Networks is a national business class broadband services provider that owns and operates one of the largest multi-service data communications networks in the United States. In addition to providing frame relay, ATM, IP and other advanced data services nationally, New Edge has one of the largest DSL coverage footprints for small and midsize cities across the country. The company also provides dedicated high-speed Internet access in about 30 major cites around the country. New Edge Networks offers frame relay access and gateway products through channel partner programs or wholesale relationships. It provides a wide variety of business-class DSL and T-1 solutions through Internet Service Providers and its own TransEdge brand. Top-tier private venture firms, global financial institutions and worldwide technology firms provide financial backing to New Edge Networks. The company’s Web site is www.newedgenetworks.com. Telephone: 1-360-693-9009.
Contact:
Sal Cinquegrani
(360) 906-9723
ATTN: New Edge Networks news releases contain information that is accurate as of the date they are issued. Information contained in past news releases may become out of date and the company does not assume responsibility for updating information contained in past news releases.