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DSL.net Scoops Broadslate Customers
February 5, 2002
By Colin C. Haley
Continuing its role of "industry consolidator", DSL.net (Quote), of New Haven, Conn., is acquiring
customers and equipment from the failing Broadslate Networks.
Charlottesville, Va-based Broadslate is ceasing operations March 15. Financial terms of the deal were not disclosed.
As part of the pickup, DSL.net gains digital subscriber line, T1, and virtual private network customers, located in parts of Florida, Tennessee, Virginia, North
Carolina and Pennsylvania. The company primarily serves small and medium-sized businesses.
"As part of our smart growth strategy, we are committed to providing customers with connectivity options and enhanced services that will keep their broadband
connections up and running with minimal or no service interruptions," said Keith Markley, DSL.net's president and COO.
DSL.net believes it has the national presence and national reach "to provide service to customers that may be impacted by the current fall-out in the broadband
arena, such as those customers influenced by the unfortunate situation at Broadslate."
Broadslate was founded in 1988. In the last three years it raised $95 million in venture capital and also had another $100 million of debt financing on hand. Investors
included Columbia Capital, JP Morgan Partners, Charles River Ventures and Bessemer Venture Partners.
DSL.net recently received around $30 million in investments that will help it operate, as well as make key acquisitions, until it reaches positive cash flow. Shares of
DSLN rose 0.0198, or 2 percent, to 1.0198. In the last 52 weeks, the issue has ranged from 0.14 to 3.4688.
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