M&A Deal Summary

AT&T Acquires MetroNet Communications

On June 1, 1999, AT&T, Inc. acquired communications company MetroNet Communications Corp. from Meritage Funds and Providence Equity Partners for 7.0B USD

Acquisition Highlights
  • This is AT&T’s 3rd transaction in the Communications sector.
  • This is AT&T’s 4th largest (disclosed) transaction.
  • This is AT&T’s 1st transaction in Canada.
  • This is AT&T’s 1st transaction in Alberta.

M&A Deal Summary

Date 1999-06-01
Target MetroNet Communications Corp.
Sector Communications
Buyer(s) AT&T, Inc.
Sellers(s) Meritage Funds
Providence Equity Partners
Deal Type Merger
Deal Value 7.0B USD

Target

MetroNet Communications Corp.

Calgary, Alberta, Canada
website
MetroNet Communications Corp. is an independent facilities based provider of competitive telecommunications services in Canada.

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Buyer(S) 1

Buyer

AT&T, Inc.

Dallas, Texas, United States

website


Category Company
Founded 1983
SectorCommunications
Employees228,470
Revenue 171.8B USD (2020)
DESCRIPTION
AT&T's corporate headquarters in downtown Dallas, Texas.
AT&T's corporate headquarters in downtown Dallas, Texas.

AT&T is a provider of telecommunications services in the United States and the world. AT&T offers services and products to consumers in the US and services and products to businesses and other providers of telecommunications services worldwide. AT&T's services and products include wireless communications, local exchange services, long-distance services, data/broadband and Internet services, video services, telecommunications equipment, managed networking, and wholesale services. AT&T was formed in 1983 and is based in Dallas, Texas.


DEAL STATS #
Overall 5 of 36
Sector (Communications) 3 of 18
Type (Merger) 1 of 2
State (Alberta) 1 of 1
Country (Canada) 1 of 3
Year (1999) 2 of 2
Size (of disclosed) 4 of 16
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1999-03-25 LanguageLine Solutions, Inc.

Monterey, California, United States

LanguageLine Solutions, Inc. is a provider of over-the-phone interpretation services from English into more than 150 languages, 24 hours a day, seven days a week.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1999-11-17 Lenfest Communications, Inc.

United States

Lenfest Communications, Inc., is a diversified entertainment and communications company.

Sell -

Seller(S) 2

SELLER

Meritage Funds

Arvada, Colorado, United States

Investor Investor Investor Investor

website


Category Growth Capital Firm
Founded 1998
PE ASSETS 1.0B USD
SizeLarge
Type Sector Focused
DESCRIPTION

Meritage Funds is a private investment firm focused on growth equity opportunities. The Firm targets companies that deliver tech-based services that leverage recurring revenue business models. Areas of interest include businesses that 'enable communications, deliver content, and facilitate commerce'. Prospective transaction situations include direct equity financings, recapitalizations, control acquisitions, consolidations, restructurings, spin-outs and management buy-outs. Meritage typically looks to commit $3 to $20 million over the lifecycle of an investment. Meritage Funds was formed in 1998 and is based in Arvada, Colorado.


DEAL STATS #
Overall 3 of 12
Sector (Communications) 3 of 8
Type (Merger) 1 of 1
State (Alberta) 1 of 1
Country (Canada) 1 of 1
Year (1999) 1 of 1
Size (of disclosed) 1 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1998-01-01 Digital Television Services LLC

Radnor, Georgia, United States

Provider of contract lodging management services

Sell $335M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2001-08-01 Inflow, Inc.

Thornton, Colorado, United States

Inflow, Inc. is a data center operator providing facilities based IT services to companies with critical business and network applications over wired and virtual networks.

Buy -
SELLER

Providence Equity Partners

Providence, Rhode Island, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1989
PE ASSETS 57.0B USD
SizeMega
Type Sector Agnostic
DESCRIPTION

Providence Equity Partners is a specialist private equity firm that targets investments in media, entertainment, communications, and information companies. Specifically, Providence seeks investments in wireless and wireline telephony, cable television content and distribution, music, film, publishing, radio and television broadcasting, and other media and communications sectors. Providence Equity looks to commit $150 million to $800 million of equity capital in transactions ranging from growth financings and recapitalizations, to buyouts and take-privates. Providence Equity Partners was formed in 1989 and has offices in Providence, Rhode Island; New York, New York; Los Angeles, California; London, United Kingdom; Hong Kong, China; and New Delhi, India.


DEAL STATS #
Overall 5 of 88
Sector (Communications) 5 of 16
Type (Merger) 1 of 6
State (Alberta) 1 of 2
Country (Canada) 1 of 3
Year (1999) 3 of 3
Size (of disclosed) 4 of 34
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1999-03-25 LanguageLine Solutions, Inc.

Monterey, California, United States

LanguageLine Solutions, Inc. is a provider of over-the-phone interpretation services from English into more than 150 languages, 24 hours a day, seven days a week.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1999-09-15 UOL

Sao Paulo, Brazil

UOL is a leading Latin American internet service provider.

Buy -