The deal dramatically enhances CoreComm’s (COMM)
Internet-based telecom strategy in the Midwest, and significantly increases
the firm’s Internet-centric capabilities as it rolls out service nationwide.
shareholders will receive 0.292 shares of CoreComm common stock and $3 in
cash for each share of Voyager.net common stock. Based on CoreComm’s $48
Friday closing price, the purchase price would be $17 per Voyager.net share.
Under the agreement’s collar provisions, the shares of common stock issued
will be reduced if the CoreComm stock price at closing exceeds $57 per
share, and increased if the CoreComm common stock price at closing is below
$41 per share. As of December 31, 1999, Voyager.net had total debt of
approximately $24 million.
Barclay Knapp, CoreComm president and chief executive officer, said the deal
makes CoreComm a stronghold in the middle of the U.S.
“Voyager.net brings us critical mass in the Internet business in terms of
customers, operations, and infrastrurture,” Knapp said. “With a combined
total of more than 450,000 customers, we become one of the leaders in the
Midwest/Great Lakes region overnight.”
Chris Torto, Voyager.net president and chief executive officer, said
Voyager.net could not find a better partner than CoreComm to help advance
its marketing strategy.
“CoreComm will help advance the service offerings to our customers and
provide the facilities and backing to complete our DSL expansion,”
Tortosaid. “This transaction will greatly benefit our customers and
CoreComm is a communications company that provides integrated telephone,
Internet, and data services to business and residential customers in select
markets throughout the U.S.
East Lansing, Mich.-based Voyager.net is a large full-service Internet
service provider serving the mid-western U.S. The company provides
high-speed data services to residential and business customers. Voyager.net
operates approximately points-of-presence in Michigan, Wisconsin, Ohio,
Illinois, Indiana, and Minnesota. It also has Competitive Local Exchange
Carrier status in Michigan, Ohio, and Wisconsin.
The transaction is subject to shareholder approval and other customary
closing conditions, and is expected to close during this summer.