Wednesday, March 23, 2005

FDN buys Supra

Today Telephony Online is announcing that FDN bought Supra. "Florida-based competitive local exchange carrier FDN Communications this week acquired another CLEC, Supra Telecom, with the help of Miami-based private equity firm HIG Capital. FDN and HIG will each own half of Supra, FDN said. Supra, which emerged from Chapter 11 bankruptcy on Monday, serves 250,000 residential customers in South Florida and claims annual revenue exceeding $150 million. In a statement issued Monday, FDN chief executive officer Mike Gallagher said the addition of Supra would lead to an expansion of the combined company that would require the creation of more than 100 new positions within the next six months. Last September, FDN agreed to merge with two CLECs--ITC Deltacom and Network Telephone--but that merger was cancelled three months later. Supra declared bankruptcy in 2002, and agreed in March 2004 to pay $18 million to settle litigation with BellSouth. In October 2004, Supra announced it would emerge from bankruptcy under the ownership of HIG Capital and Endeavor Capital, which would acquire the company for $26.9 million in cash, subordinate debt and assumed debt. Neither FDN nor Supra were immediately available to supply details. http://telephonyonline.com/home/news/fdn_communications_supra_032205/

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