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HickoryTech Completes VoIP Co. Acquisition
TMCnet VoIP Minute Watch Columnist
HickoryTech Corp. of Mankato, Minn. announced Friday that it completed the acquisition of Enventis Telecom from ALLETE, Inc. Under terms of the agreement, HickoryTech paid $35.5 million in cash, subject to normal working capital adjustments, for the transport and enterprise Internet protocol (IP) telephony sales business.
Thanks to the transaction, Enventis Telecom is now a wholly owned subsidiary of HickoryTech. Its assets include approximately 75 employees and offices in Plymouth, Duluth, Rochester, Minn., and Sioux Falls, S. D. Enventis revenues, for the year ended December 31, 2004, totaled $43 million.
"The finalization of the Enventis acquisition marks a major step forward for our current and future business customers, for HickoryTech, and for our shareholders," said John Duffy, HickoryTech's president and chief executive officer. "With enhanced resources and a greater geographic presence, HickoryTech is now able to provide businesses with greater flexibility and choice in how their network communications solutions are delivered. We expect to build on our recent successes in the business IP Telephony and network transport markets, by focusing on opportunities along this expanded fiber route."
HickoryTech also announced it expanded its existing credit facility. The newly expanded credit facility will used to sustain the existing HickoryTech outstanding debt and to fund the Enventis acquisition and associated costs, and altogether is expected to result in approximately $135 million in outstanding indebtedness for HickoryTech.
Today's news follows HickoryTech's announcement made yesterday about its acquisition of Mouseworks Computer and Network Services, a North Mankato, Minn. firm. The acquisition allows HickoryTech to enhance its current 24x7 Internet support services with the addition of Internet setup; hardware and software troubleshooting; computer network security; and home networking. Effective immediately, Mouseworks by HickoryTech service is available for residential and small business customers at HickoryTech's premises at 221 East Hickory Street, or at the customer's location within a twenty-mile radius of Mankato. The acquisition includes an established customer base, equipment inventory, and website at www.mouseworkspc.com. Terms of the agreement were not disclosed at press time.
Enventis Telecom
HickoryTech Corporation
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Johanne Torres is contributing editor for TMCnet and Internet Telephony magazine. To see more articles by Johanne Torres, please visit Johanne Torres' columnist page
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