Broadview Closes $40M Funding

Broadview Networks, one of a handful of competitive local exchange carriers (CLECs) left standing amid a brutal shakeout, has closed a $40 million round of equity financing.

by @NY Staff [June 11, 2002]

New York-based Broadview said the funds would help it close and integrate its acquisition of Network Plus, the Randolph, Massachusetts-based CLEC it purchased in March.

The Network Plus purchase marks the fourth acquisition that Broadview Networks has completed within the past eight months, part of a consolidation sweeping through a telecommunications sector suffering from a glut of supply related to the tech boom years.

The New York-based Broadview, which bills itself as an integrated communications provider (e-ICP), said the Networks Plus purchase would bring its access lines to 300,000, placing it second to Verizon in local data and voice service in the Northeast region.

It would also take over a long-haul fiber network stretching from New Hampshire to Florida, along with significant metropolitan fiber networks.

Prior to the Networks Plus purchase, Broadview owned about 175,000 lines over which it provides local, long-distance, voice and high-speed data services.

Broadview now operates in nine markets located in New York, New Jersey, Massachusetts and Pennsylvania.

Baker Capital, ComVentures, New Enterprise Associates, Lightspeed Venture Partners and TIAA-CREF Investors took part in the round.

Network Plus Corp. and its operating subsidiary filed for Chapter 11 protection from creditors in January of 2002, listing assets of about $433 million and debts of $207 million.

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