10/27/00
C1 Communications Inc. and Wispra Networks Inc. Reach Agreement In Principle to Combine to Form XO Communications Canada
Mississauga, ON - C1 Communications Inc. and Wispra Networks, Inc., -- a venture of Wispra Inc., TD Capital Group and XO Communications, Inc. (Nasdaq:XOXO), formerly known as NEXTLINK -- announced today the signing of a letter of intent under which C1 and Wispra Networks would combine to create a full service voice, data and Internet communications company serving Canada’s top 12 markets. The combined company will operate under the name XO Communications Canada Inc.
The closing of the transaction is subject to a number of conditions, including negotiation of the definitive agreements and board and regulatory approvals. Definitive agreements relating to the transaction are expected to be reached by the end of the year.
In connection with the transaction, XO Communications Canada will receive contributions of network and operating assets from Wispra Networks Inc. and C1 Communications. Following the closing of the transaction, XO Communications Canada investors are expected to include Wispra Inc., TD Capital Group, New Brunswick Investment Management Corp., C. William Stanley, James A. MacMurray, selected members of the C1 Communications management team, Alta Communications, Charlesbank Capital Partners, and XO International, a subsidiary of XO Communications, Inc.
C. William Stanley, founder, chairman and CEO of C1 will become XO Communications Canada Chairman. A.S. (Tony) Cassetta will become Chief Executive Officer and will be responsible for directing the company’s operations and 400+ employees. Cassetta brings to XO Canada Communications more than 25 years of telecommunications experience, including more than 20 years at Bell Canada in a variety of executive positions. He is currently serving as C1 Communications’ President and Chief Operating Officer. The remainder of C1’s current senior executives are expected to form the nucleus of the operating management team of XO Communications Canada.
“We are very excited for our customers, investors and employees as this transaction accelerates our strategy for major market penetration and gives us access to North American and global reach,” said A.S. (Tony) Cassetta. “In addition to increasing our access to progressive technology, marketing and customer solutions, we add the support of more world class investors, who have chosen to take a position in this venture because of the proven ability of our people to consistently execute our operational plans.”
“This combination is expected to expand the capabilities of Wispra Networks Inc. as we add significant management strength that will enable us to fulfill our long term vision of providing high quality broadband communications services throughout Canada,” said Joe Church, president of Wispra Networks Inc.
“We believe that we will create a formidable, facilities based national competitor in the Canadian broadband services marketplace,” said Nate Davis, XO Communications, Inc. president and chief operating officer. “Together, C1 Communications and Wispra Networks will provide a strong collection of broadband network assets and capabilities that will be directed by a strong Canadian management team and organization that is already in place today.”
XO Communications Canada will utilize a rich set of broadband network assets to provide voice and data services throughout much of Canada. Upon the completion of the transaction, the combined company is expected to have more than 130 operational co-location facilities in telephone company central offices in 12 Canadian cities, metro fiber facilities in Montreal, Nortel DMS 500 switches in Toronto and Vancouver, access to XO Communications, Inc.’s North American inter-city fiber network, and 400MHz of fixed wireless spectrum in each of Canada’s six largest cities.
XO Communications Canada also expects continuing construction or expansion of local fiber networks in Toronto, Ottawa, Vancouver, Calgary, Edmonton and Montreal. Additionally, the company has plans to secure more than 400,000 square feet of data hosting / carrier co-location space in these six markets.
About C1 Communications
C1 Communications (www.c1communications.com) is a next generation telecommunications company, committed to providing small and medium sized businesses with telecommunication solutions which respond to the convergence of data, Internet, voice and video and address the growing demand for IP (Internet Protocol) based communications. A privately held company, C1 Communications’ national operations headquarters is in Mississauga, Ontario, Canada.
About Wispra Networks Inc. Wispra Networks Inc. is a wholly owned subsidiary of Wispra Holdings Inc., owned by Wispra Inc., TD Capital Group, and XO Communications. Wispra Networks is a facilities-based provider of next generation telecommunications services targeting small and medium enterprises. The company owns 24 GHz radio licenses in the top six metropolitan areas of Canada.
About TD Capital Group
TD Capital Group is the merchant banking arm of TD Securities and a leader in the Canadian private equity market. TD Capital manages capital commitments of over $2.5 billion, including over $500 million through TD Capital Canadian Private Equity Partners. With offices located in Toronto, Montreal, New York and London, TD Capital works with companies to finance the growth of their core businesses over the long term.
About XO Communications
XO Communications, Inc. is one of the world’s leading providers of broadband communications services offering local and long distance voice communication services, Digital Subscriber Line (DSL) access, Web hosting and e-commerce service, Virtual Private Networks (VPNs), dedicated access, global transit and application infrastructure services for delivering applications over the Internet or a VPN.
XO has assembled an unrivaled set of facilities-based broadband networks and Tier One Internet peering relationships that, when complete, will serve much of the United States, Canada and Europe. In the United States, XO has more than 430,000 metro fiber miles in operation and a 384,000 fiber-mile inter-city network under construction. The Company is also North America’s largest holder of fixed broadband wireless spectrum, with licenses covering 95 percent of the population of the 30 largest U.S. cities and a partnership with licenses covering all of the top cities in Canada. XO has also agreed in principle to acquire more than 80,000 metro fiber miles in Europe to serve the London, Frankfurt, Brussels, Amsterdam and Paris markets and an 88,000 fiber-mile pan-European fiber network connecting 21 major European cities and transatlantic capacity that will eventually expand to 10 Gbps.
For more information contact:
Tova Glass C1 Communications (905) 814-3276 tglass@c1communications.com Todd Wolfenbarger / XO Communications Media and Industry analysts 703-547-2011 or 703-675-3496 twolfenbarger@xo.com Lisa Miles / XO Communications Financial Analysts 703-547-2440 Jim Lawson / Wispra Networks Inc. VP Business Development and General Counsel 416-703-1998
