Axtel to buy Avantel for USD 500 million

By Editor on October 28, 2006 · Leave a Comment

Mexican operator Axtel has agreed to acquire Avantel for USD 500 million. The deal combines Axtel’s local access network with Avantel’s IP backbone and metro fibre rings, making the combined group the second-largest carrier in Mexico with over 750,000 customers. Axtel will pay USD 310 million cash and assume USD 190 million in net debt. The integration of the two companies is expected to lead to annual synergies of USD 40 million within two years of closing. Avantel is expected to report annual sales of USD 515 million and EBITDA of USD 111 million in 2006. The deal is expected to close by the end of the year, pending regulatory and shareholder approval. Axtel said it has received letters of commitment for financing the takeover.

Source- http://www.telecompaper.com