SOURCE: TelePacific Communications

December 06, 2006 14:59 ET

TelePacific Communications to Acquire Arrival Communications

Expanding Offering to Central California Customers

LOS ANGELES, CA -- (MARKET WIRE) -- December 6, 2006 -- TelePacific Communications, a facility-based Competitive Local Exchange Carrier (CLEC), and Arrival Communications, a CLEC providing voice and data services to markets principally in Central California, today announced that they have signed a definitive agreement pursuant to which TelePacific will acquire control of Arrival. TelePacific Communications serves customers throughout California and Las Vegas, Nevada; it also serves customers in Chicago, Illinois through its Mpower Communications [subsidiary].

As a result of the transaction, TelePacific Communications will acquire control of approximately 64,000 additional access line equivalents in California. TelePacific's wholesale customers will gain access to Arrival's network and collocation facilities in Central California.

"Arrival's operations, network facilities and customer concentration in Central California will accelerate TelePacific's existing expansion efforts in the region," said Dick Jalkut, president and CEO of TelePacific.

TelePacific entered the Central California markets in 2005 through its acquisition of the small- and medium-enterprise customer base of Pac-West. Since that time, it has opened a fully operational call center in Stockton, California and sales offices in Stockton and Fresno, with an additional sales team in Bakersfield, California.

"Arrival's customer base will benefit from an enhanced capacity to deliver a broader portfolio of services in a larger footprint and a relationship with an even stronger, more competitive partner," said Tony DiStefano, CEO and chairman of Arrival. "The combined company's commitment to the customer experience and the local community makes the marriage of the two companies a natural choice."

Closing of the transaction, which is expected in the first quarter of 2007, is subject to customary closing conditions and receipt of applicable state and federal regulatory approvals.

TelePacific was advised by Brown Brothers Harriman & Co. and Credit Suisse. Gibson, Dunn & Crutcher LLP provided legal counsel. Q Advisors LLC acted as the exclusive financial advisor to Arrival in connection with this transaction.

About TelePacific Communications

TelePacific Communications is a facility-based Competitive Local Exchange Carrier that serves customers throughout California and Las Vegas, Nevada directly and, in Chicago, Illinois, through Mpower Communications of Illinois. Headquartered in Los Angeles, the company is the leading competitive carrier in California and Las Vegas, with customer care centers in Los Angeles and Stockton in California and Las Vegas in Nevada. In business since 1998, TelePacific provides services through a combination of TelePacific-owned switches and network infrastructure, including its robust fiber-optic network assets. Offering local and long distance voice, dedicated Internet access, private networking and data transport services as well as bundled voice and Internet solutions, TelePacific manages more than 75,000 customer accounts with 800,000 access lines. For more information visit www.telepacific.com.

About Arrival Communications

Arrival Communications is a competitive local exchange carrier (CLEC), providing voice and data services to underserved markets in California. The company offers a full suite of business products including, SDSL and T1 broadband Internet access in addition to local, centrex, long-distance, toll free, and voice mail services on a single bill. Founded in 1991 and managed by a group of individuals with extensive experience in the telecommunications industry, the privately held company based in Bakersfield, California utilizes a highly trained, direct sales force to proactively design cost-effective voice and data solutions for small to medium sized companies. By focusing only on business accounts and maintaining a local presence, Arrival Communications can deliver greater personalized service and more billing flexibility than the traditional telephone company. For more information, visit the Arrival website at www.arrival.com.

Contact Information

  • Contact:
    Rebecca Levin
    Phone: 800-865-7397 or 213-213-3622