Los Angeles, 8/2/2010 – TelePacific Communications, the largest CLEC providing integrated voice and data telecommunications services to the small and medium-sized business (“SMB”) customer segment in California and Nevada, today announced a definitive agreement to acquire the SMB customer base and network of O1 Communications (“O1”). TelePacific will also acquire a SAS 70 Type II certified data center located in Sacramento, California.
Under the terms of the agreement, TelePacific Communications will gain approximately 1000 business customers in California. O1 will continue to own and operate its wholesale line of business.
The combination of TelePacific and O1’s SMB businesses will expand TelePacific’s SMB market share and network switch footprint in a geographic area of California historically underserved by TelePacific, creating a more efficient provider of retail services, including local, long distance, data networking, Internet access, integrated and other enhanced business services including mobile, managed security and others to SMB customers in California and Nevada. The transaction will further strengthen TelePacific as the number one competitor to AT&T and Verizon for SMB customers within California.
“TelePacific and O1 have solid reputations for providing best-in-class customer care and service, and we look forward to developing relationships with our new customers,” said Dick Jalkut, president and CEO of TelePacific. “We are pleased to add a SAS-70 certified data center to our assets, as well as O1’s state-of-the-art IP network; these will allow TelePacific to more efficiently serve our customers and improve their network experience.”
Customers will benefit from TelePacific’s network footprint in California as well as Nevada and wide area networking capabilities globally. The 18,500 square foot SAS-70 certified data center will allow TelePacific to offer additional managed services to existing and new customers which TelePacific will integrate into its MPLS network upon close.
“O1 Communications expanded from its wholesale roots into the SMB market in 2004 and we’ve enjoyed working with our SMB customers as we have grown,” said Brad Jenkins, CEO and co-founder of O1 Communications. “TelePacific has the same customer-focused philosophy as O1 and our customers should feel comfortable that their service and experience will be similar.”
Closing of the transaction is subject to customary closing conditions, including federal regulatory approvals. TelePacific will assume operational responsibility for the O1 SMB customer base following regulatory approval, expected in the third or fourth quarter of 2010. Throughout the closing process, there will be no impact to O1’s SMB customer service or support, and TelePacific and O1 will work together to ensure a seamless transition of customer service.
The exclusive financial and legal advisors to TelePacific were Brown Brothers Harriman & Co. and Gibson, Dunn & Crutcher LLP, respectively. The exclusive financial and legal advisors to O1 were RBC Daniels and Downey Brand LLP, respectively.
About TelePacific Communications
TelePacific Communications is a competitive carrier that serves customers throughout California and Nevada. Headquartered in Los Angeles, the Company is the leading competitive carrier in its footprint, with customer care centers in Los Angeles and Stockton in California and Las Vegas in Nevada. In business since 1998, TelePacific provides services through a combination of TelePacific-owned switches and network infrastructure, including its own and leased robust fiber-optic network assets. Offering local and long distance voice, dedicated Internet access, private networking and data transport services as well as bundled voice and Internet solutions and wholesale services, TelePacific manages more than 39,000 customer accounts with more than 1.1 million access lines in service.
About O1 Communications, Inc.
O1 Communications, Inc. is a competitive local exchange carrier serving enterprise businesses throughout California and other carriers in the global wholesale market from its Sacramento headquarters. Founded in 1998, O1 offers service providers wholesale VoIP peering solutions, call origination and call termination in California and the domestic US. Small and medium size business voice and data services include MPLS, dedicated and dynamic voice services, high-speed bandwidth, hosting, colocation, managed security, backup/recovery solutions and SIP Trunking. For more information, visit www.o1.com.
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