By SCBIZ Staff

GREENVILLE — NuVox Communications and FDN Communications, of Maitland, Fla., Wednesday announced they have signed an agreement to merge the two privately held communications providers.

The new company will operate under the name NuVox Communications, and will provide IP-based communications solutions including voice, data connectivity and storage, private networking, Web hosting and security services to businesses across the Southeast and Midwest. The combined enterprise will initially have more than 90,000 customers, 1 million voice and data lines in service and annual revenues exceeding $500 million.

"Combining NuVox and FDN Communications makes excellent strategic sense given our similar philosophies about customers—that is, a keen focus on the business market evidenced by our suite of products and services aimed specifically at that market and our unwavering commitment to proficient, 'high-touch' customer service," said Jim Akerhielm, NuVox Communications CEO.

The two companies have similar target customers and overlap in geographic markets in the Florida and metropolitan Atlanta areas, he said.

"A larger total footprint and deeper customer penetration in key markets will position NuVox for further growth," added Mike Gallagher, CEO of FDN Communications. "Both companies have a proven track record and have posted very compelling financial results. Together, the new combined company will build on the strengths and experience of each company."

Leading the new company will be Akerhielm, who will serve as CEO, and Gallagher who will serve as president of strategic markets. The board of directors will consist of David Solomon as board chairman, Akerhielm and Gallagher, Jim Wade and Gillis Cashman of MC Venture Partners, James H. “Jamie” Greene Jr. of Kohlberg Kravis Roberts and Co., Scott Perper of Wachovia Capital Partners and Jim Fleming of Columbia Capital Partners.

The combined company's headquarters will be in Greenville with extensive sales, customer and technical operations in both Greenville and Maitland, Fla. The transaction is expected to close in June. Until closing, FDN Communications and NuVox Communications will continue to operate separately.

The board of directors of both NuVox and FDN Communications approved the transaction. Financial terms of the proposed merger were not disclosed.