Hickory Tech Corp. (NASDAQ: HTCO), a provider of communications services, is acquiring IdeaOne Telecom Group LLC, a metro fiber network provider in Fargo, North Dakota, for $28 million in cash.
The Mankato, Minnesota-based Hickory Tech said the transacation provides the company immediate access to serve Fargo area metro customers.
The acquisition adds 225 fiber route miles to company's regional fiber network and adds 1,900 business customers and 1,700 residential customers, Hickory Tech said.
IdeaOne, which has 40 employees, recorded fiscal 2010 revenue of $11.1 million, 85 percent of which was from the business customer base. IdeaOne provides data networking, Internet, colocation, phone and hosting services.
HickoryTech said it expects to fund the purchase with existing liquidity through cash reserves and additional term debt available under its existing credit facility.
The deal is expected to close in the first quarter of 2012.
Hickory Tech provides IP-based voice and data solutions, MPLS networking, data center and managed hosted services and communication systems to businesses. It also offers broadband Internet, Digital TV, voice and data services.??
HTCO, which has been trading in the 52-week range between $8.15 and $12.45, fell 1.1 percent to $10.36 at 10.03 am EST on Tuesday.
{$end}
No comments:
Post a Comment