Well, I guess it’s official. Verizon has acquired MCI for $4.8 billion in equity and $488 million in cash (total: $5.3 billion). The transaction also encompasses a special dividend payable to MCI shareholders, bringing the total to $6.7 billion for the number 2 long-distance carrier. The main play here is Verizon expanding into the enterprise market and keeping pace with sibling SBC, who recently purchased AT&T. MCI brings with it a host of government contracts and such large customers as HP. Throw in MCI’s UUNet assets and Verizon is in great shape to offer services to a truly global audience. I blogged earlier about the possibility of running Verizon’s VoiceWing VoIP service over a network like MCI’s. I guess we’re going to see how that works out after all. According to a press release issued today from MCI: The transaction adds new strength to the telecommunications services both companies provide. It ensures that consumers and businesses will have a supplier with the financial strength to maintain and improve MCI’s Internet backbone network, which is the largest in the world based on company-owned points of presence. The transaction will also mean better service for Enterprise customers by enhancing Verizon’s ability to compete for and serve large-business and government customers with a complete range of services, including wireless and the most sophisticated IP (Internet Protocol) based services. The Boards of Directors of both companies have approved the agreement. “This is the right deal at the right time,” said Verizon Chairman and CEO Ivan Seidenberg. “We have been evaluating a transaction with MCI for some time, and now we have the opportunity to reach an agreement at the right price that works for both companies and at a time when MCI is gaining momentum. It is a natural and logical extension of Verizon’s strategy to transform our company to serve growth markets and offer broadband technologies. “This acquisition builds on and accelerates Verizon’s growth plan in the Enterprise market, and it facilitates our becoming a major provider in that market sooner and less expensively than if we had continued on a path of organic growth. The acquisition will significantly enhance our customer service and competitive positioning by giving us a global reach, a suite of IP-based and value-added services, and a powerful, broad base of large-business and government customers.” “With our heritage of innovation, global network and world-class Enterprise capabilities, MCI is the right partner for Verizon,” said Michael D. Capellas, MCI president and CEO. “Combined with Verizon’s financial strength and record of operational excellence, we will accelerate delivery of next-generation services, broaden our product portfolio and better serve our customers.”
acquisition android Apple Asterisk Avaya Blog broadband conference developers digium enterprise FCC Fonality google interactive intelligence IP PBX iPhone ITEXPO Miami Microsoft mobility nokia Nortel Obama open source Research rich tehrani Sangoma security SIP Skype TMC TMCnet Unified Communications verizon video VoIP voip WiMAX wireless
- 4G (14)
- Business (38)
- Contact Center (14)
- Development tools (15)
- Enterprise (51)
- Environment (1)
- Google (7)
- Government (2)
- Healthcare (4)
- Home Networking (5)
- IP Communications (124)
- ITEXPO (46)
- LTE (6)
- Legal (4)
- Mobility (81)
- Open Source (26)
- Personal (26)
- Research (28)
- Robotics (6)
- Security (5)
- Service Provider (39)
- Technology (77)
- Unified Communications (35)
- Video (16)
- VoIP (94)
- WiMAX (10)
- Wireless (24)
- iPhone (3)
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- July 2006
- June 2006
- April 2006
- March 2006
- February 2006
- January 2006
- December 2005
- November 2005
- October 2005
- September 2005
- August 2005
- July 2005
- June 2005
- May 2005
- April 2005
- March 2005
- February 2005
- January 2005
- December 2004
- November 2004
- October 2004
- September 2004
- August 2004
- July 2004
- June 2004
- May 2004
- June 2003
Featured Videos