Last week, InfoTel Communications, Inc., a telecommunications leader based in Brainerd, announced plans to merge with Integra Telecom, an Oregon-based telecommunications company.
The two companies have entered into a definitive agreement to merge. The plan is now subject to state and federal regulatory approval, which is expected in early 2000.
Greg Arvig, InfoTel president and former founder of USLink in Pequot Lakes, said the merger allows the companies to combine resources in order to expand market areas and provide enhanced telecom technology.
Arvig said the business philosophies of the companies match. He noted Integra has other entities in Minnesota, including Scott-Rice Telephone Co. and Integra of Minnesota, two companies based in Prior Lake.
Under the combined companies, Arvig, who will be a company shareholder, will serve as president of the Midwest Region.
Arvig said the merger was necessary to compete in this industry. "It's been a real exciting industry," he said. "I intend to stay involved with the Integra operation."
InfoTel has grown from 43 employees a year ago to 75 today. In the Brainerd lakes area market, InfoTel has attracted about 25 percent of the business customers.
Arvig said the merger will allow the company to aggressively pursue this continued growth and expansion.
In Minnesota, the combined companies will have more than 30,000 access lines, making it one of the largest integrated communications providers in Minnesota.
Arvig said Integra was a natural fit for InfoTel. "I think we're fairly community focused," he said, noting a desire to stay on the edge of innovation. "I think it will be good for the customer, good for employees and good for the community."
Dudley R. Slater, president and chief executive officer of Integra Telecom, said in a news release, "We are very pleased to have the employees and management of InfoTel join our team. InfoTel's successful history of offering high quality products and services to the underserved small and mid-sized business community in key Midwest markets provides a great complement to Integra's services in the region."
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About Integra Telecom: Headquartered in Beaverton, Ore., Integra Telecom is an integrated communications provider serving the Oregon and Minnesota regions. Integra owns and operates Scott-Rice Telephone Co., a local exchange carrier that has served Scott and Rice counties for more than 50 years, and owns Integra Telecom of Minnesota, a competitive local exchange carrier company with authority to operate throughout Minnesota.
About InfoTel Communications: Based in Baxter, InfoTel is a CLEC company currently serving 13,000 lines through the states of Minnesota and North Dakota. InfoTel was the first company to offer customers a competitive local service offering in the state, which included offerings of long distance, data and Internet services.
Source: InfoTel Communications
