M&A Deal Summary

PAETEC Holdings Acquires McLeodUSA

On September 17, 2007, PAETEC Holdings acquired communications company McLeodUSA for 557M USD

Acquisition Highlights
  • This is PAETEC Holdings’ 2nd transaction in the Communications sector.
  • This is PAETEC Holdings’ 2nd largest (disclosed) transaction.
  • This is PAETEC Holdings’ 2nd transaction in the United States.
  • This is PAETEC Holdings’ 1st transaction in Iowa.

M&A Deal Summary
Date 2007-09-17
Target McLeodUSA
Sector Communications
Buyer(s) PAETEC Holdings
Deal Type Merger
Deal Value 557M USD
Advisor(s) Deutsche Bank Corporate & Investment Banking
Jefferies (Financial)
Ropes & Gray (Legal)

Target

McLeodUSA

Cedar Rapids, Iowa, United States
McLeodUSA, Inc. is a provider of managed IP-based communications services to small and medium-sized enterprises, and traditional circuit-switched telephony services to commercial customers in the Midwest, Rocky Mountain, Southwest and Northwest regions of the nation.

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Buyer(S) 1

Buyer

PAETEC Holdings

Fairport, New York, United States
Category Company
Founded 1998
Sector Communications
Employees4,639
DESCRIPTION

PAETEC Holdings is an integrated communications provider offering local, domestic and international long distance services, high speed Internet access, eCommerce and other data services to medium and large sized businesses, colleges and universities, hospitals, governmental organizations and affinity groups throughout the United States.

DEAL STATS #
Overall 2 of 4
Sector (Communications) 2 of 4
Type (Merger) 2 of 2
State (Iowa) 1 of 1
Country (United States) 2 of 4
Year (2007) 1 of 2
Size (of disclosed) 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-08-14 US LEC

Charlotte, North Carolina, United States

US LEC provided voice and data communications services to medium and large size businesses in the Southeast and Mid-Atlantic U.S.

Buy $1.3B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-10-12 Allworx

East Rochester, New York, United States

Allworx Corp is comprised of two divisions. The Allworx Product division develops award winning, phone & network systems for small-to-medium sized businesses through a network of Authorized Resellers. The product line includes the Allworx 6x, 10x and 24x systems and Allworx 9112 and 9102 phones along with a series of software options. By combining the advanced features of today’s VoIP systems with the key system features SMBs have grown to rely on, Allworx systems are ideal replacements for the millions of aging (TDM) PBX and key phone systems in use today. Allworx Corp’s second division, the Allworx Consulting division, delivers elite software and digital hardware engineering services to both large and small companies who want to enhance and compliment their research and product development capabilities.

Buy $25M
Mergr

Product

Company

Legal