Kelley Drye Represents CTC Communications in Merger of Equals to Form One of Largest CLECs in U.S.
March 17, 2006
Kelley Drye is representing CTC Communications Group, Inc. (“CTC”) in its “merger of equals” with Choice One Communications (“Choice One”), creating one of the largest competitive local exchange carriers (“CLECs”) in the country and the largest privately-held CLEC in the Northeast. The two companies’ networks overlap in seven states. After the closing, the combined company expects to generate more than $550 million in annual revenues by serving more than 100,000 customers throughout the Northeast, Midwest and Mid-Atlantic states. CTC has provided carrier-class VoIP services for five years and now offers a range of voice, Internet and data services to business customers.

The transaction reflects a greater trend of continued consolidation among telecom carriers. To that end, Kelley Drye also represented CTC, the fastest growing CLEC in the Northeast in the past year, in its acquisitions of Lightship Telecom and Connecticut Broadband in 2005. The closing of the most recent transaction is subject to customary conditions, including regulatory approval and bank financing to retire certain existing indebtedness of CTC and Choice One. Several publications including The Wall Street Journal Online, The Deal and Telecomweb.com highlighted the merger in various articles.