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NewsAccess Integrated Networks to Merge with Birch Telecom11.06.07  Combined Company to have 300,000 Voice & Data lines, 100,000 Small & Medium Business Customers, $200 million in Annual Revenues & 400 Employees Atlanta, GA & Kansas City, MO – November 1, 2007 - Access Integrated Networks, Inc. announced today that it has signed a definitive agreement to merge with Birch Telecom, Inc. The transaction is expected to close early next year after obtaining necessary government approvals. The combination will yield one of the largest competitive local exchange carriers in its multi-state region. The combined company will have more than 300,000 voice and data lines, 100,000 small and medium business customers, annual revenue of $200 million and 400 employees.
During the past 10 years, both Access and Birch have each successfully focused on transitioning from their beginnings as unbundled network element platform providers to facility-based suppliers in their respective markets serving the small and medium size business community. “In the past two years, Birch has significantly restructured itself into a profitable and debt free company,” said Stephen Dubé, President and CEO of Birch. Mr. Dubé went on to say “Access has an ambitious growth and expansion plan. Joining with Access will contribute to the achievement of that plan and expand the services and choices available to Birch’s customers. We believe this combination with Access is in the best interest of our customers, employees and shareholders.” The definitive agreement requires the approval of Birch’s stockholders. Birch will shortly call a stockholders meeting to approve the transaction. A majority of Birch’s stockholders have signed voting agreements in which they have agreed to vote in favor of the transaction. Financial terms of the agreement were not disclosed as both companies are privately held. However, the combination of the two companies is expected to generate substantial operating and network cost savings as more than one third of each company’s revenues derive from overlapping geographic markets. Upon closing, Mr. Oddo will lead the combined company while Mr. Dubé will return to work as a principal at CXO L.L.C., a Dallas-based growth and management consulting firm. Redwood Capital Group acted as financial advisor to Access in connection with the transaction. FTI Capital Advisors advised Birch Telecom. The legal advisor for Birch on the transaction was Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. and for Access Integrated Networks was Jones Day. About Access Integrated Networks About Birch Telecom About Redwood Capital Group About FTI Capital Advisors Media Contacts: Jim Dunn, Vice President of Sales & Marketing Birch Telecom asamson@birch.com 816-300-3421 |
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“We look forward to combining both the Birch customers and employees into our Access family in the very near future” said Vincent M. Oddo, President and CEO of Access. “This merger is directly in line with our corporate strategy and further positions Access to grow our facilities business deeper into our existing markets and expand into selected new markets in the southwest. Many of these Birch customers are located in our existing southeastern markets where Access already offers its state of the art IP-based voice and data services. This merger also expands Access’ facility-based service footprint into four additional southwestern states including, Kansas, Missouri, Oklahoma and Texas,” said Mr. Oddo.