Sale of the day: Portland-based Integra Telecom will pay $710 million to buy a Minnesota phone and data company Eschelon. Although not a hosting deal (Eschelon has some minor hosting assets), it is interesting from a valuation perspective. Echelons’ 2006 EBITDA was $56 million and forward annual EBITDA is $78-80 million. This creates some strong multiples of 12.6X for trailing 06′ 9.1X forward. That speaks well for the sector.
Regarding hosting valuations and market desirability there are some positive currents in the wind. It looks like there are several new large capital sources entering the market. New money and desirability is always good.
========== MORE ABOUT TOM ==========
About Tom Millitzer
I am an M&A guy. I sell Hosting Companies. I want you to fulfill your dreams. If you are building your company or exiting for success...I want help you grow rich.
I started NCC International in 1994, we represented our first hosting company in 1997. NCC has completed over 400 assignments. If you are considering buying or selling you need to know me. I do not bite.
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