Broadview Nears Network Plus Buy

Broadview has received the approval from bankruptcy court judges of its offer to purchase the assets of bankrupt Network Plus, which are worth about $433 million, for $15.75 million.

by boston.internet.com Staff [March 22, 2002]

Broadview Networks's $15.75 million bid for Network Plus has been approved by a federal bankruptcy court judge.

Provided the deal passes muster with regulators, the New York telecom provider will gain 200,000 local lines, thousands of long-distance accounts and 370 employees from its distressed Randolph, Mass., sector mate.

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

"Our two companies are a strong fit," said James C. Crowley, Network Plus COO. "Both companies are focused on small and medium-sized businesses and both are committed to support and grow our customer base."

Broadview operates in New York, New Jersey, Massachusetts, and Pennsylvania. Adding Boston-area customers is a major market opportunity for the company, which is among a handful of telecommunications startups surviving the oversupply shakeout.

One reason backers continue to invest in Broadview is its cautious approach to building its network. It looks to acquire customers first, then looks to upgrade its network. The purchase price also seems to be a significant bargain for privately held Broadview.

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

"We hope the regulators will endorse our bid," said Vern Kennedy, Broadview's president and CEO. "Our aim is to close the transaction expeditiously, and make it as uneventful as possible for customers.

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