Lightyear Network Solutions on July 2 announced the acquisition of SouthEast Telephone Inc., a CLEC specializing in resale of services in rural markets. Both Lightyear and SouthEast Telephone are based in Kentucky. Lightyear and SE Acquisitions LLC, a wholly-owned subsidiary, has closed an Asset Purchase Agreement with SouthEast, which had filed for voluntary bankruptcy under Chapter 11 in the US Bankruptcy Court for the Eastern District of Kentucky, Pikeville Division, according to a news release.
SouthEast Telephone earned approximately $37.5 million in revenue in 2009, has some 33,000, primarily rural residential, customers and 150 employees. Based in Louisville, Lightyear Network Solutions provides telecom services to small, medium and large businesses and residential customers throughout the US. In addition to reselling local and long distance, local PRI and digital T1 services, Lightyear has built its own VoIP network and has begun offering wireless services via wholesale contracts with several voice and data service providers.
Expected to close October 1 this year, SE will pay up to $560,000 in cash for SouthEast’s administrative and priority expenses; $4,000 in cash for each SouthEast employee not offered employment; a total of 200,000 shares of Lightyear Network Solutions’ common stock to SouthEast shareholders. SE will also assume some $3.765 million of secured debt–SouthEast retains some liabilities–while expecting to provide a minimum $2 million in investment capital post closing to fund working capital needs and network expansion.