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360networks announces purchase of Dynegy Inc.’s North American communications business

360networks Corp., a provider of telecommunications services, has acquired Dynegy Inc.'s North American communicati...

March 31, 2003  

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360networks Corp., a provider of telecommunications services, has acquired Dynegy Inc.’s North American communications business for an undisclosed sum.

Under the terms of the agreement, 360networks will purchase Dynegy’s North American communications operations, consisting of a high-capacity broadband network spanning more than 16,000 route miles with 65 wholesale customers and access points in 44 U.S. cities. 360networks will assume Dynegy’s existing customer base and its remaining fiber leases and its co-location facilities.

“Dynegy’s telecom business will complement our U.S. network footprint and enhance our ability to provide high-quality data communications services to carriers and enterprises throughout North America,” said Greg Maffei, 360networks’ chairman and CEO. “The volatility in the telecommunications industry continues to create consolidation opportunities for those with the right assets and financial backing.”

“We anticipate a seamless transition for existing Dynegy customers and will continue to offer the same high level of service that has characterized the operations of both 360networks and Dynegy,” added Jimmy Byrd, 360networks’ president and chief operating officer.

Pending regulatory and other approvals, the transaction is expected to close in April.

For Dynegy, the transaction allows the company to complete its strategy of exiting the communications business to focus its core business operations. “Today’s announcement is significant for Dynegy and its stakeholders as it represents our last major divestiture in the restructuring around our generation, natural gas liquids and regulated energy delivery businesses,” said Dynegy president and CEO Bruce Williamson.