ITC^DeltaCom Inc. says it is scrapping plans to merge with Florida Digital Network Communications Inc. (FDN).
The mutual agreement means ITC^DeltaCom does not plan to merge with Network Telephone Corp. because the agreement was contingent on the FDN merger closing.
ITC^DeltaCom did not reveal why it is terminating the agreement with FDN, but the West Point, Ga., telecommunications company was expected to file a document this week with the Securities and Exchange Commission that could provide some details.
“While we are disappointed that we are unable to move forward with the transaction, we believe this mutual termination is in the best interests of our shareholders, customers and employees,” ITC^DeltaCom Chairman and CEO Larry Williams said in a Dec. 17 press release. “We will continue to focus on the successful execution of our operating plan.”
In September, ITC^DeltaCom announced plans to merge with FDN and NT Corp., the parent company of Network Telephone, in stock agreements. At the time, ITC^DeltaCom said the combined company was expected to generate about $800 million in annual revenue, serve approximately 120,000 business customers in 45 southeastern markets and support 635,000 retail voice lines.
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