Qwest to acquire OnFiber Communications

Qwest to acquire OnFiber Communications

Telecom service operator Qwest Communications International has announced their plans to acquire privately held communications network operator OnFiber Communications Inc.

The deal is worth around $107 million and it would help the company further boost their out-of-region coverage.

Qwest also gets the option to substitute up to $35 million of Qwest shares for cash. This is valid till the deal is closed which is expected to be done in the third quarter.

It would further help the company boost its earnings and free cash flow starting from next year.

OnFiber is based in Austin, Texas and they specializes in high-speed communications Networks. Most of their clients are large business and government bodies. They have a presence in 23 metropolitan areas and is expected to post revenue of nearly $60 million in 2006.