PAETEC Holding Corp.
| Company type | Public |
|---|---|
| Industry | Telecommunications |
| Predecessor | PaeTec Communications, Inc. |
| Founded | 1998 |
| Founder | Arunas A. Chesonis |
| Defunct | 2011 |
| Fate | Acquired by Windstream Communications |
| Headquarters | Perinton, New York , United States |
Area served | United States |
Key people | Arunas A. Chesonis (founder and CEO) |
| Products | Voice and data communication solutions, local and long-distance telephony, Internet connectivity, software products, managed network services |
| Parent | Windstream Communications (from 2011) |
PAETEC Holding Corporation was a telecommunications enterprise ranked within the Fortune 1000, with its headquarters situated in Perinton, New York, United States. Established in 1998 under the name PaeTec Communications, Inc. by Arunas A. Chesonis, the company expanded through key mergers such as those with US LEC in 2007 and Cavalier Telephone Company, eventually becoming a publicly listed entity before being acquired by Windstream Communications in 2011.
Focusing on voice and data communication solutions, PAETEC provided services including local and long-distance telephony, Internet connectivity, software products, and managed network services. Its clientele primarily consisted of medium to large enterprises, educational bodies, healthcare facilities, hospitality venues, government agencies, and various other organizations within its service areas.
Mergers and acquisitions
- September 9, 1999 – Integrated CAMPUSLINK Communications Systems, a private telecom company based in Ann Arbor, Michigan.
- August 19, 2004 – Acquired Covista North East Call Zone, operating under the name Total Tel.
- January 4, 2005 – Purchased American Long Lines, a privately owned telecommunications firm.
- February 28, 2007 – Completed acquisition of US LEC headquartered in Charlotte, resulting in the transition to the publicly traded PAETEC Holding Corp.
- October 12, 2007 – Took over Allworx Corp.
- February 8, 2008 – Absorbed McLeodUSA.
- December 6, 2010 – Acquired Cavalier Telephone Corporation.
- December 28, 2010 – Bought Leap RevChain, a subsidiary of FTS Ltd.
- May 31, 2011 – Acquired XETA Technologies, Inc.
- December 1, 2011 – PAETEC was itself acquired by Windstream Communications.
From its inauguration in 2006 until 2008, PAETEC held the naming rights for PAETEC Park, a stadium dedicated to soccer located in Rochester, New York.
Name origin
The designation PAETEC originates from the initials representing the founder’s wife Pam and their four children: Adam, Erik, Tessa, and Emma. Originally operating as PaeTec Communications, Inc., the company adopted the name PAETEC Holding Corp. following its acquisition of US LEC but is generally known simply as PAETEC.
Controversy
Following its acquisition phase, PAETEC (also referred to as STARNET PAETEC) has been frequently associated with VOIP services implicated in telephone scam activities.
Other
- In 2007, an announcement was made jointly by New York State Governor Eliot Spitzer and PAETEC CEO Arunas Chesonis regarding plans to replace Rochester’s Midtown Plaza with a new corporate headquarters for PAETEC; however, these plans were eventually abandoned.
- The company served as a sponsor for Rochester Institute of Technology’s Imagine RIT: Innovation and Creativity Festival held in May 2008.