Mankato Telecom Firm Enventis Sold For $350M
Mankato-based Enventis, formally known as HickoryTech, has been purchased by Consolidated Communications Holdings, Inc., for $350 million.
Enventis, which provides communications services through its large fiber network, has over 500 employees and is one of Minnesota’s 60 largest public companies based on its revenue—which totaled $189 million in 2013, up 3 percent from the year before.
Mattoon, Illinois-based Consolidated Communications is acquiring 100 percent of Enventis’ 13.8 million shares. Additionally, as part of the deal, Consolidated Communications is assuming $123 million of Enventis’ debt.
Enventis shareholders will receive 0.74 shares of Consolidated Communications stock for each share of Enventis stock. Based on the closing price of Consolidated on Friday, the transaction represents $16.50 per share for each Enventis share, which is 17.4 percent more than the closing price of Enventis shares on Friday.
According to Enventis spokeswoman Jennifer Spaude, decisions regarding Enventis’ current Minnesota employees and facilities won’t be made until the deal closes, which is expected to occur in the fourth quarter of this year.
Spaude said, however, that the markets in which the two companies’ operate don’t overlap. Consolidated Communications’ operations are located in Illinois, California, Missouri, Kansas, Pennsylvania, and Texas. Enventis operates facilities in Minnesota, Iowa, North Dakota, South Dakota, and Wisconsin.
Spaude also said the two companies haven’t determined whether Enventis will retain its name, or which members of Enventis’ leadership team may or may not take on roles at the newly formed company.
The revenue of the combined company will be about $785 million with profits of $332 million for the 12 months ending March 31, the two companies said in a joint statement.
Consolidated Communications said it expects to incur about $17.4 million in expenses related to costs of the merger but that the deal will also generate $14 million in operating synergies.
“Enventis has built a strong business delivering competitive business and broadband services over a 4,200 route mile fiber network,” Consolidated Communications’ Chairman and CEO Bob Currey said in a statement. “The combination and additional markets creates a broader platform from which to grow and expand.”