VarTec closes Excel Communications buy
Dallas Business Journal
VarTec Telecom Inc. has completed its previously announced purchase of Excel Communications' North American operations from Bell Canada Enterprises Inc.
VarTec, a privately held Dallas phone company, said Monday it has received final regulatory and other approvals for the $250 million deal. Excel was sold to Montreal-based Teleglobe Inc. in 1998 for $3.5 billion, and Bell Canada bought Teleglobe in 2000.
VarTec said the combination with Dallas-based Excel will create a $1.7 billion enterprise. The companies previously said the resulting business will have about $2 billion in sales and 4,800 employees worldwide.
Under the terms of the deal, BCE will retain responsibility for Excel's $1.3 billion in long-term debt. BCE has also agreed to accept an interest-bearing note for Excel.
VarTec recently killed a proposed merger with Louisville, Ky.-based Lightyear Communications, because it said unspecified "necessary and important conditions" weren't met.
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