said it has bought "substantially all" of the assets of the Intermedia Business Unit (IBI) from WorldCom Inc. (Quote).
Terms of the deal were not disclosed, but Allegiance and Clinton, Miss.-based WorldCom in a statement issued late Thursday confirmed that the transaction is "not a financially material event for either company."
WorldCom said it had to sell the IBI assets pursuant to a consent decree entered into by WorldCom and Dallas-based Intermedia with the U.S. Justice Department, in connection with their merger last year. The deal required WorldCom to divest all of its newly acquired Intermedia assets, except for its controlling interest in Beltsville, Md.-based Digex, a Web-hosting company.
Eventually, though, WorldCom had to sell only its Internet assets as a result of the Intermedia acquisition.
WorldCom bought Intermedia in July 2001 for about $6 billion in stock and debt assumption. The deal was originally announced in 2000.
Allegiance Telecom provides local, long distance, international calling, high-speed data transmission, Internet connectivity and Web hosting services.
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