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The following content is from an older version of this website, and may not display correctly.Confidence boosted by growing demand for network connectivity ÔÇô driven by quickly spreading use of the Internet ÔÇô three regional operators of US fiber optic networks have put themselves up for sale at prices indicating extreme self-assurance. KDL Inc., Alpheus Communications and Fibertech Networks have all hired investment bankers, each looking to generate about 10 times its EBITDA, the Wall Street Journal reported, citing anonymous sources.
The only company whose asking price has been confirmed is KDL, which is looking to get about $950m for the 30,000 miles of dark fiber it owns. Given that the other two are looking for the same EBITDA/desired-bid ratio, Fibertech and Alpheus are asking between $400m and $500m each.
Evansville, Ind.-based KDL's network has reach in 26 states and WSJ cites analysts that say the company can actually get between $600m and $800m for its assets. KDL is a subsidiary of a larger telecom called Q-Comm Corp.
Alpheus is jointly owned by pipeline operator El Paso Corp. and Genesis Park, a private-equity company. Fibertech is owned by Nautic Partners and Bank of America Corp. The company's CEO John Purcell told WSJ that the offer has generated a lot of interest from prospective buyers.
The only company whose asking price has been confirmed is KDL, which is looking to get about $950m for the 30,000 miles of dark fiber it owns. Given that the other two are looking for the same EBITDA/desired-bid ratio, Fibertech and Alpheus are asking between $400m and $500m each.
Evansville, Ind.-based KDL's network has reach in 26 states and WSJ cites analysts that say the company can actually get between $600m and $800m for its assets. KDL is a subsidiary of a larger telecom called Q-Comm Corp.
Alpheus is jointly owned by pipeline operator El Paso Corp. and Genesis Park, a private-equity company. Fibertech is owned by Nautic Partners and Bank of America Corp. The company's CEO John Purcell told WSJ that the offer has generated a lot of interest from prospective buyers.