DIGEX Acquired?

Rumor has it that DIGEX was just acquired by Intermedia Communications
(a CLEC from Tampa!).

Does anyone know anything?

Rodney Joffe
Genuity Inc.

Maybe this will clear things up.


Yeah. Its a done deal. Intermedia bought Digex.


Declan McCullagh 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.


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
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.



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>

Its true - go check out the newswires.

Yep. got 'em for $150 million. As J.D. said... remind me to own an ISP