Paetec acquiring McLeodUSA for $557 million

CLEC consolidation continues, and Paetec Holding Corp., a Fairport, N.Y.-based CLEC, continues to do its fair share of the consolidating. The company acquired U.S. LEC earlier this year, and has now agreed to acquire Des Moines, Iowa-based McLeodUSA in an all-stick transaction worth about $557 million.

McLeodUSA was an early CLEC star, and has been on the comeback trail since a 2005 bankruptcy. By combining with Paetec, the companies can create a super-regional CLEC to compete with much broader operators than either of the individual firms have been able to challenge in the past.

For more:
- Telephony has the breaking story and background

Suggested Articles

Despite some challenges, organizations of all sizes are using containers in more of their initiatives, including AI and machine learning.

On Monday the FCC announced that it had it authorized more than $563 million in funding to expand rural broadband services in 24 states.

Driven by 200 Gbps wavelength shipments, coherent DWDM revenue will reach $16 billion by 2023, according to a report.