New Edge buys AtWork for $1.5 M, promises continued service
Soon-to-close AtHome shed a little more of its assets when a bankruptcy court judge approved the sale of its commercial arm to New Edge Networks for $1.5 million.
The deal averts a service shutdown for "most" AtWork customers, New Edge says.
Approved by Judge Thomas E. Carlson of the U.S. Bankruptcy Court for the Northern District of California in San Francisco, the acquisition includes 1,300 AtWork customers in 26 cities, related premises equipment and network routers installed in 33 Internet hub locations in major U.S. cities. New Edge says the unit should generate annual revenue of $18 million.
The purchase is "a natural extension of our existing broadband business," says New Edge President and CEO Dan Moffat, in a statement. The company already operates its TransEdge Service, and will start migrating customers immediately, it says. The company has become "operationally efficient at migrating customers whose broadband carriers unfortunately went out of business," Moffat adds.
The company says it will honor current contract terms and prices, and AtWork customers won't need to place new orders or buy new equipment. New Edge says it will contact all customers within two weeks to confirm transfer of service.
New Edge owns and operates a multiservice datacom network in the United States, delivering frame relay, ATM and other advanced WAN services via 600 multiservice switches. It also provides DSL service to more than 360 small- and medium-size cities via ISPs and its own retail channel under the TransEdge brand, it says. The company's revenue is equally split between WAN and DSL services.