Paetec, McLeodUSA combination expected to generate annual revenue of $1.6 billion

By Lisa Kerner

Charlotte, N.C., Feb. 8 - Paetec Holding Corp. boosted its presence in the data, internet protocol and voice services markets with the completed acquisition of McLeodUSA Inc.

Stockholders of both companies approved the merger at separate meetings on Friday.

It was previously reported that Paetec agreed to acquire McLeodUSA in an all-stock merger valued at $557 million, including debt.

"Businesses across America now have another choice when selecting an end-to-end solution, including network access, transport, and equipment," Paetec chairman and chief executive officer Arunas A. Chesonis said in a company news release.

"Paetec's coast-to-coast geographic footprint offers a truly nationwide alternative to the legacy carriers," Chesonis added.

The combined company is expected to generate annual revenue of at least $1.6 billion and have more than 3.5 million access line equivalents.

Paetec is a communication services company offering voice, data and IP services. The company is based in Fairport, N.Y.

Privately held McLeodUSA provides managed IP-based communications services and traditional circuit-switched telephony services. The company is located in Cedar Rapids, Iowa.

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