XO Communications (xo.com), a well-known Web hosting and Internet service carrier, is glad to report the completion of acquiring a great deal of Allegiance Telecom's assets (algx.com). The latter company has already sold certain assets to Qwest Communications and is in the process of moving its shared Web hosting business.
XO Communications took the decision of making this move after realizing the great benefits the company would be given regarding its local market coverage across the US. Acquiring Allegiance’s services is a sure way to expand the carrier's offering to businesses of all sizes, including small and medium-sized enterprises.
The recently-implemented acquisition is anticipated to reduce carrier's costs and expedite XO's path to profitability. This way. overall expenditures will
certainly be reduced to a considerable extent. The carrier can now enhance its position as a provider of wholesale local access services to other
telecommunications companies.
The acquiition of Allegiance's assets by XO Communications has amounted to $322 million in cash, including $11 million of adjustments for working capital
and approximately 45.4 million shares of XO common stock.
