WAYNESBORO, Va.--(BUSINESS WIRE)--Lumos Networks Corp. (“Lumos Networks”) (NASDAQ:LMOS), a leading fiber-based service provider in the mid-Atlantic region today announced it signed a purchase agreement to acquire Clarity Communications Group (“Clarity”), which operates a 730 mile fiber network with 75 on-net locations located across four states in the south-eastern United States. The vast majority of Clarity’s operations and fiber mileage is in the state of North Carolina.
Timothy G. Biltz, CEO of Lumos Networks said, “I am excited to announce our acquisition of Clarity Communications, which we expect to close in the first quarter of 2017. We believe this transaction will be accretive on an Adjusted EBITDA basis on day one and demonstrates a disciplined approach to efficiently expand our fiber footprint into both new markets and verticals.”
Mr. Biltz continued, “Clarity, led by founders Todd Peverall and Andy Carwile, gives us an instant foothold within the Carrier and Enterprise verticals in many high growth North Carolina markets and gives us a new sales channel into various government end markets, including military installations and e-rate. Clarity will be a contributing factor in Lumos achieving the necessary scale needed to become a pure play fiber bandwidth infrastructure company.”
“We are enthusiastic about becoming part of the Lumos team as they continue their transformation towards a pure-play fiber company,” said Todd Peverall, President of Clarity Communications. “Our team is motivated to continue to grow our North Carolina fiber business and we see numerous opportunities to utilize our expertise within the government space across the entire 9,200 fiber mile Mid-Atlantic footprint.”
About Lumos Networks
Lumos Networks is a leading fiber-based service provider in the Mid-Atlantic region serving Carrier, Enterprise and Data Center customers, offering end-to-end connectivity in 24 markets in Virginia, Pennsylvania, West Virginia, Maryland, Ohio and Kentucky. With a fiber network of 9,204 fiber route miles and 475,507 total fiber strand miles, Lumos Networks connects 1,297 unique Fiber to the Cell sites, 1,642 total FTTC connections, 36 data centers, including 7 company owned co-location facilities, 1,984 on-net buildings and approximately 3,300 total on-net locations. In 2015, Lumos Networks generated over $114 million in Data revenue over our fiber network. Detailed information about Lumos Networks is available at www.lumosnetworks.com.
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Any statements contained in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. The words “anticipates,” “believes,” “expects,” “intends,” “plans,” “estimates,” “targets,” “projects,” “should,” “may,” “will” and similar words and expressions are intended to identify forward-looking statements. Such forward-looking statements reflect, among other things, our current expectations, plans and strategies, and anticipated financial results, all of which are subject to known and unknown risks, uncertainties and factors that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Many of these risks are beyond our ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise. Important factors with respect to any such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, include, but are not limited to: our ability to complete the Clarity acquisition on a timely basis and the impact of the acquisition on our operations; rapid development and intense competition with resulting pricing pressure in the telecommunications and high speed data transport industry; our ability to grow our data business on an organic or inorganic basis in order to offset expected revenue declines in legacy voice and access products; our ability to obtain new carrier contracts or expand services under existing carrier contracts at competitive pricing levels to offset churn and achieve revenue growth from our carrier businesses; our ability to separate our legacy business on a timely basis; our ability to effectively allocate capital and timely implement network expansion plans necessary to accommodate organic growth initiatives; our ability to complete customer installations in a timely manner; adverse economic conditions; operating and financial restrictions imposed by our senior credit facility and our unsecured debt obligations; our cash and capital requirements; our ability to maintain and enhance our network; the potential to experience a high rate of customer turnover; federal and state regulatory fees, requirements and developments; our reliance on certain suppliers and vendors; and other unforeseen difficulties that may occur. These risks and uncertainties are not intended to represent a complete list of all risks and uncertainties inherent in our business, and should be read in conjunction with the more detailed cautionary statements and risk factors included in our SEC filings, including our Annual Report filed on Form 10-K.