PAETEC Communications Inc. is a wholly-owned subsidiary of PAETEC Holding Corp., which has common shares trading on Nasdaq under the symbol PAET.
PAETEC Communications' primary business is providing enterprise and SMBs in metropolitan areas with a package of integrated communications services that encompasses data services, including broadband Internet access and virtual private network and voice, including local telephone services and domestic and international long distance. The company was founded in 1998 in Fairpoint, NY and delivers services to 48 states, including 84 of the top 100 major cities.
The service provider has almost tripled its annual revenue since 2006 through acquisition. Takeover candidates tend to be competitive carriers and providers of networking, integration and equipment solutions. Acquisitions during 2010 included Cavalier Telephone LLC, Richmond, VA, which added 17,000 new route miles to PEATEC's fiber network; Quagga Corp., a California distributor of interconnection equipment, and US Energy Partners, an electricity reseller based in Amherst, NY. PAETEC's bigger acquisitions were executed during 2006 when the company purchased US LEC and McLeodUSA.
In addition to growing through buying competitors and other companies, PAETEC also attempts to deepen penetration in existing markets. The provider launched a data center in Andover, MA and plans to open eight more through 2011, which will include Houston, Milwaukee, and Pheonix.