Minnesota-based HickoryTech (Nasdaq: HTCO) has acquired IdeaOne, which operates a metro fiber network in Fargo, N.D., for $28 million.
The telco last year pushed its Enventis subsidiary into the Fargo area last year, said HickoryTech chief executive John Finke. "This transaction gives us immediate access to the market, making our entire portfolio of business services available to IdeaOne customers," he said, noting that the completion of HickoryTech's broadband stimulus route from Brainerd, Minn. to Fargo in 2012 will enhance its capabilities and services in the market.
The deal is expected to close in the first quarter of 2012, with HickoryTech using cash on hand and incurring some debt for the acquisition.
With the deal, the company adds 1,900 business customers and 1,700 residential customers along the 225 miles of fiber; the business generated $11.1 million in revenue during 2010.
Telecom Ramblings pointed out that the IdeaOne deal triples the amount of on-net fiber-lit buildings Enventis now has, adding some 650 units.
HickoryTech is the largest telecom based in Minnesota. It offers IPTV through much of its footprint and currently has 10,500 subscribers to its digital TV service.
For more:
- see this release
- see this Telecom Rambings article
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