more detail:
Battery Ventures' CLEC, XCOM Technologies, Merges With Level 3 Communications In a $185 Million Deal
WELLESLEY, Mass. -- Battery Ventures, a national venture capital firm focused exclusively on communications and software, announced that Level 3 Communications has signed a definitive merger agreement with Battery's portfolio company, XCOM Technologies -- a data-focused competitive local exchange carrier (CLEC) based in Cambridge, MA. Based upon the closing price of Level 3's stock on April 3, the merger consideration is approximately $165 million in stock and an estimated $20 million in warrants and options. Battery Ventures has worked closely with XCOM since February 1997, and closed on its financing with the company in July 1997. The merger is expected to close during the second quarter of 1998.
"I am proud of the XCOM team and what they accomplished in a brief period of time," stated Todd Dagres, General Partner at Battery Ventures and XCOM Board member. "Merging with a company of Level 3's caliber is a validation of XCOM's vision and unique capabilities."
"Battery demonstrated deep knowledge of the industry and added more value than they promised they would," stated Dave Callan, CEO of XCOM. "They helped supercharge our company and were instrumental is making this become a reality," Callan concluded.
XCOM is one of three CLEC investments Battery Ventures has completed to date, placing the firm among the top CLEC investors in the nation. "We were fortunate to have selected three of the early leaders in the CLEC market," continued Dagres, speaking of Battery's investments in XCOM, Focal Communications and Allegiance Telecom. "Telecom reform has created an unprecedented opportunity in the local exchange -- a $105 billion market that is still monopolized by the incumbent local exchange carriers (ILECs).
CLECs will revolutionize the local telecommunications market by introducing innovative new technologies, driving down prices, and improving customer service. We believe that our companies are at the forefront of this market space."
Battery Ventures, founded in 1983, is a national venture capital firm that specializes in investments in early emerging companies in the communications and software industries. One of the leading high tech venture capital firms in the country, Battery closed its fourth fund in February 1997, raising $200 million from an elite group of limited partners. Battery's portfolio investments include: Aurum Software, Brooktrout Technologies, Fore Systems, Infoseek, HNC Software, Concord Communications, NEXTEL Communications, and Peerless Systems. Battery Ventures has offices in Wellesley, MA and San Mateo, CA. Battery can be reached on the Internet at battery.com.
/CONTACT: Todd Dagres of Battery Ventures, 781-996-1000/
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