Monday, October 02, 2006

Xspedius Execs Get Big Pay Day

The real reason the "Super CLEC" is being created is called the Big Pay Day. The execs that created Xspedius 4 years ago as well as current and former CEO's stand to gain millions, even though Xspedius loses money.

"Time Warner Telecom filed more details on the Xspedius acquisition with the Securities and Exchange Commission (SEC) Sept. 22. That information shows Xspedius had revenue of $214 million last year and was at $114 million in revenue for the first six months of 2006. The filing said that the company, while still losing money, generated $14.5 million in cash from its operations, more than triple the $4.6 million in cash for the same period in 2005."

"In total, the private investment firms invested about $200 million in Xspedius when the business formed in 2002, Senda said. Thermo invested the most, about $100 million. Senda said he still holds options in Xspedius. ... Senda said he started assembling Xspedius' management team after Allen convinced him to join in buying Xspedius, which was then a $30 million-in-revenue company reselling telecommunications services from a base in Louisiana."

"Time Warner Telecom said it expects to wrap up the purchase later this fall. Xspedius would operate as a wholly owned subsidiary".... TWTC will invest $40-50M integrating the 2 companies... "However, Pierron and Wiley are not expected to be retained after the sale."

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