Qwest to buy OnFiber
Monday, May 15, 2006
NEW YORK (Reuters) - Local telephone operator Qwest
Communications International Inc. said on Monday it had agreed
to buy privately held network solutions provider OnFiber
Communications Inc. for $107 million to help deepen its
out-of-region metropolitan coverage.
Qwest has an option, until the deal closes, to substitute up to
$35 million of Qwest shares for cash. The deal is expected to
close in the third quarter and to add to Qwest's earnings and
free cash flow starting next year.
Austin, Texas-based OnFiber specializes in high-bandwidth,
all-fiber solutions serving mainly large business and government
clients. It operates an all-optical network in 23 metropolitan
areas with a full offering of access and transport services.