TelePacific Communications, a Los Angeles-based CLEC serving California and Nevada, announced Monday a definitive agreement to acquire the small and medium business customer base, network and a data center from rival California CLEC O1 Communications Inc. O1, which is based in Sacramento, will continue to own and operate its wholesale business. The transaction, terms of which were not disclosed, is expected to close by the end of the year.

Under the terms of the agreement, TelePacific will gain approximately 1,000 business customers as well as footprint in a geographic area of California historically underserved by TelePacific, the company noted in a press statement. In addition, the company said it will acquire an 18,500 square foot SAS-70 certified data center in Sacramento, which will allow TelePacific to offer additional managed services over its MPLS network.

Founded in 1998, TelePacific offers local, long distance, data networking, Internet access, mobile and managed security services. It has customer care centers in Los Angeles and Stockton, Calif., and  Las Vegas.  It manages more than 39,000 customer accounts with more than 1.1 million access lines in service.

Founded in 1998, O1 offers service providers wholesale VoIP peering solutions, call origination and call termination in California and the domestic United States. SMB voice and data services include MPLS, dedicated and dynamic voice services, high-speed bandwidth, hosting, colocation, managed security, backup/recovery solutions and SIP trunking.

TelePacific and O1 have solid reputations for providing best-in-class customer care and service, and we look forward to developing relationships with our new customers,” said Dick Jalkut, president and CEO of TelePacific. We are pleased to add a SAS-70 certified data center to our assets, as well as O1s state-of-the-art IP network; these will allow TelePacific to more efficiently serve our customers and improve their network experience.”

Closing of the transaction is subject to customary closing conditions, including federal regulatory approvals. TelePacific will assume operational responsibility for the O1 SMB customer base following regulatory approval, expected in the third or fourth quarter of 2010.