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Re: DIGEX Acquired?

  • From: Bob Bownes
  • Date: Thu Jun 05 22:16:26 1997

Declan McCullagh wrote:
> 
> On Thu, 5 Jun 1997, Rodney Joffe wrote:
> 
> > Rumor has it that DIGEX was just acquired by Intermedia Communications
> > (a CLEC from Tampa!).
> >
> > Does anyone know anything?
> 
> Maybe this will clear things up.
> 
> -Declan

Thanks Declan, you pretty well summed it up.

The aquisition of Digex by Intermedia has those of us @ Intermedia
pretty excited.
Without trying to parrot the press release, it is a good compliment to
our core businesses
which are bandwidth (fiber in the ground) frame relay (5th largest FR
carrier in the US)
and Internet access (we've been doing that for 3.5 years...) Some may
recognize
Intermedia as the folks who bought EMI Communications last year.

As the Digex letter stated, don't expect any big changes. Same quality
of service.
The synergies are very good, we expect great things from the
arrangement, and we welcome
Digex to Intermedia.

There are a handfull of Intermedia folks wandering about NANOG (we are
based in Tampa, so
we took the opportunity to send a bunch of our operations folks as well
as the lone marketing 
weasel [me]). I'm sure you'll see them on Friday, and probably hear from
them in the future.

Thanks again, we now return you to the normal technical
discussions...(what does it say about
this sort of thing in the NANOG AUP? :-})

	Bob Bownes
	Sr. Product Manager, Internet Services
	Intermedia Communications

> 
> ********
> 
> Date: Thu, 5 Jun 1997 14:51:28 -0400 (EDT)
> From: Doug Humphrey <doug@ss1.digex.net>
> 
> You might all ask "what does this mean?"  Well, it is pretty
> straight-forward.  ICI is buying Digex as a complete operation,
> and other than the fact that they have about $400 m in cash
> sitting around, there won't be a lot of changes here at Digex.
> We are continuing to operate the company, we aren't moving to
> Florida, they aren't moving up here, etc.
> 
> It should be a good deal for us here at Digex.  It is our opinion
> that the Internet world is going to get a bit tougher, with a need
> for capital, and there are a lot of good fits between us and ICI
> so we decided to team up.
> 
> I doubt that there will be much decernable change any time soon.
> 
> Doug
> 
> ********
> 
> DIGEX Service Update: DIGEX Acquired by ICI - 6/5/97
> 
> Dear DIGEX Customer:
> 
>   DIGEX today announced the combination of the firm with Intermedia
> Communications (ICI) of Tampa, Florida.  (See attached Press Release).
> 
>   We want to share with you, our customers, what the implications of this
> combination of firms will mean for your business.
> 
>   First:  There will be no contract or term changes,  and all of your services
> and the rates for same will remain as contained in your present contract.
> There will be no changes in the products or delivery mechanisms, or
> telephone numbers, personnel, or e-mail addresses for support of the
> services that you have acquired from DIGEX.  Our service quality excellence
> will continue as in the past and in fact be enhanced, given the depth of
> resources (human and financial) that this combination enables.  Service
> quality will continue to be our mantra, for we believe this is a
> distinguishing characteristic of our Corporation.  In fact, you have told us
> as much, in both surveys, and the vote of confidence you have provided us by
> fueling our tremendous revenue and customer growth in the industry.
> 
>   Second: In the future we expect to have additional product offerings and
> enhancements, given the present and planned ICI service offerings and
> enhancements.  We also expect to expand the geographic reach of our network
> and thus the business markets that we can serve.  In fact, we believe this
> combination will provide for significant POP and market expansion, given the
> network integration potential that exists from this combination.
> 
>   Let me assure you of one abiding and guiding light for DIGEX  that will
> absolutely NOT change SERVICE QUALITY.  That has been a differentiating
> characteristic for DIGEX and ICI , and we will continue that focus and
> emphasis.  In addition, we will continue our sales and marketing efforts
> directed towards the business market as in the past.
> 
>   Should you have any specific questions concerning this combination, please
> visit our web site at <http://www.digex.net - we will post details as they
> are available for distribution.

<press release clipped>




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