Telecom provider with Bangor, New Gloucester bases will be acquired for $106M
Wireline telecommunication services provider Otelco Inc. (Nasdaq: OTEL), which has operations centers in Bangor and New Gloucester, said Monday the company has agreed to be purchased by Oak Hill Capital, a private equity firm based in Stamford, Conn.
Under the agreement, affiliates of Oak Hill will acquire Otelco, which is headquartered in Oneonta, Ala., for $11.75 per share of common stock, or a total of $40.6 million. In addition, the firm will assume or refinance Otelco’s outstanding debt, bringing the total value of the acquisition to $105.7 million, according to a news release.
The deal is expected to close in the fourth quarter of this year, subject to approvals by shareholders and regulators and customary closing conditions.
“This transaction is a good outcome for Otelco’s shareholders, customers and employees. We believe Oak Hill will provide the resources to speed up our network upgrade plan and wish them and the company continued success,” said Otelco Chairman Stephen McCall in the release.
Oak Hill Principal Jennifer Jun commented: “Otelco has assembled a talented leadership team capable of ramping up their deployment of advanced technology solutions. With our experience and capital, we can support Otelco’s mission to serve more customers with increasing broadband speeds.
"We look forward to working with Richard and the rest of Otelco’s senior management team in executing on Otelco’s next chapter of growth.”
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