Lingo Announces Closing Of Impact Telecom Acquisition

Lingo Communications, a leading nationwide network service provider dedicated to serving the SMB and Consumer markets, announced that on December 31, 2018, it closed its previously announced acquisition of TNCI Impact LLC (“Impact”) in an all-cash transaction.

Transaction overview:

Lingo acquired Impact, including its customers, operations and network infrastructure.

Combined company is expected to have 2018 annual revenue of USD 168 million and annual Adjusted EBITDA of USD 26 million, including cost synergies.

Transaction expected to be significantly accretive to Lingo’s adjusted EBITDA immediately upon closing, leading to USD 24 million in annual free cash flow.

Highlights:

Creates a leading global telecom and managed service provider, with approximately 250,000 SMB, Carrier, and Consumer customers.

Demonstrates strong fundamentals, with monthly recurring revenue comprising approximately 90 percent of total revenue and a churn rate below the industry average.

Enjoys significant opportunities for growth by cross-selling and up-selling its comprehensive suite of SMB, Carrier, and Consumer services.

Combines both companies’ network infrastructure assets into a leading IP-based UC network and a FG-D network that are both cost effective and highly scalable.

Combines a talented employee base of technology professionals, bound by a common commitment to providing exceptional customer service.

“This acquisition is a major milestone in Lingo’s strategy to become a leading global telecom and managed service provider to SMB, Carrier, and Consumer customers. This transaction also provides a robust platform from which to pursue additional value-enhancing initiatives including strategic acquisitions,” said Vincent M. Oddo, Executive Chairman of Lingo. “In addition, as we close the Impact acquisition, Chuck Griffin, the current Impact CEO, will now become the new President & CEO of the combined company. Chuck is a very experienced and accomplished leader who is uniquely positioned to take the combined business to the next level of success using the increased scale and resources.”

“The combination of Lingo and Impact is extremely symbiotic and a very natural fit,” said Chuck Griffin. “Our combined commitment to network integrity has earned us the trust of both our national and international customers. We are also highly committed to our distribution channels and closing this transaction builds even greater width of products to help us serve the SMB, Carrier and Consumer markets.”

Jones Day and Cahill Gordon & Reindel served as legal advisors to Lingo, with Paul Hastings and Morgan Lewis serving as legal counsel to Impact. Stephens Inc. served as exclusive financial advisor to Lingo.― PR Newswire