Consolidated Communications' move to acquire fellow independent telco Enventis for $350 million may not be on par with the blockbuster deals its independent ILEC counterparts CenturyLink and Windstream have made in recent years, but it's significant in that it is a sign of another smaller telco branching out of its all-voice service roots.
Consolidated Communications has reached an agreement to acquire all 13.8 million shares of Enventis, formerly HickoryTech, for about $350 million, marking yet another element in the ongoing consolidation of the independent telco market.
Enventis, formerly known as HickoryTech, expanded its business cloud services to include a cloud Wi-Fi service, a hosted unified communications service called Cloud Compute and a data protection service. In addition, the company is expanding its SingleLink UC service, which was first introduced about 12 years ago.
HickoryTech reported that its fiber and data segment was once again the shining star, with revenues rising 6 percent year-over-year to $17.7 million due to an increase in high capacity fiber and data sales to both retail businesses and wholesale carrier customers.
HickoryTech is ready to take on a new identity and it has asked its shareholders to approve its request to change its corporate name to Enventis Corp.
HickoryTech's fiber and data revenue continued to operate well in the fourth quarter of 2013 as revenues rose 5 percent to $17.3 million due to 7 percent growth in business revenue and a 3 percent increase in wholesale revenue.
HickoryTech has reached a settlement with Brandywine Communications Technologies over six DSL broadband-related patents.
HickoryTech's fiber & data segment continues to be a major driver for the regional telco, rising 8 percent year-over-year to $17 million. Similar to previous quarters, the telco attributes the growth in this segment to an uptick in sales within its business and wholesale services as well as nine months of Fargo operations from its acquisition of Enventis.
HickoryTech is taking another step toward becoming an IP-based services provider by aligning all of its products under its Enventis brand. The service provider plans to ask shareholder approval to change its corporate name to Enventis during its upcoming shareholder meeting in May 2014.
Enventis, HickoryTech's (Nasdaq: HTCO) business services subsidiary, has completed the build out of the $21 million Greater Minnesota Broadband Collaborative Project, a middle-mile network that...