Telecommunications company Paetec Holding Corp PAET.O has agreed to acquire privately held rival Cavalier Telephone LLC for $460 million in cash, the Wall Street Journal reported.
The deal, through which Paetec seeks to boost its fiber-optic-network business amid surging broadband use in homes and offices, has been approved by the boards of both companies and is expected to close in four to six months, the WSJ said.
"This is a fantastic deal for us because of (Cavalier's) strong presence in the mid-Atlantic and Northeast," where Paetec also has a stronghold, Paetec Chief Executive Arunas Chesonis said in an interview with the Journal on Sunday.
Fairport, New York-based Paetec provides data, voice and Internet solutions to business-class customers. Virginia, headquartered Cavalier provides telecommunications solutions for business and consumer customers, including network and data solutions for carriers.
Paetec and Cavalier could not be reached for comments by Reuters.
(Reporting by Krishna N. Das in Bangalore; Editing by Hans Peters)