Silver Point Capital will acquire Sage Telecom next quarter and has contracted with CXO LLC, a Dallas-based management and advisory services firm, to oversee operations during the transition.

Greenwich, Conn-based Silver Point is a global private investment firm with approximately $7 billion under management. It provides financing to and invests in companies across all industries.

Sage is a competitive local exchange carriers (CLEC) headquartered in Allen, Texas and focused on residential and small business customers in suburban and rural communities. It provides local, long-distance and Internet services in 12 states. As of January 2005, it had 550,000 residential and business customers.

Brian Kushner, listed as both CXO and Sage employee, will lead CXO's management activities at Sage and Chris Williams, president and CFO at Sage, will lead the company during the regulatory approval process.

Kushner said Sage is well positioned to take advantage of future growth opportunities. Silver Point said in a statement that the company will benefit further from an increased commitment of resources to management and infrastructure and that it intends to re-invest in the business.

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