Consolidated Communications is selling its Ohio assets to Middle Point Home Telephone Company, which is part of Hanson Communications. Terms of the deal were not disclosed but Consolidated said that the Ohio assets contributed about $9 million in revenue in fiscal 2020. The agreement includes approximately 4,000 access lines and 3,900 Internet connections.
Consolidated said that it will provide more details of the divestiture during its third quarter earnings call. The deal is expected to close by the end of the year.
In 2013 Middle Point merged with Telephone Service Company, which was owned by Hanson Communications. Hanson has operations in Minnesota, Nebraska, Ohio and South Dakota and the family run business has been expanding its footprint in Ohio with its acquisitions of Telephone Service Company in 2007, Middle Point in 2012 and now Consolidated’s Ohio assets.
“Our family is very excited to enter into this agreement and expand our Ohio service area,” said Bruce Hanson, treasurer and owner of family-owned Hanson Communications, in statement. “We look forward to serving these customers and expect a seamless transition upon closing.”
Consolidated, for its part, is focused on bringing fiber to 300,000 new locations this year. The company said during its second quarter earnings call that it was on track to hit that goal for the year. By 2025 Consolidated plans to deliver fiber to 1.6 million homes.
However, the company has been focusing most of its efforts in Northern New England, California and Texas. In New England, in particular, the company has been successful in forming public-private partnerships with municipalities, which makes it feasible to bring high-speed broadband to communities that otherwise would not be possible.
Consolidated reported second quarter revenue of $320.4 million. Its consumer broadband revenue was $68 million, an increase of 3.7%. Commercial data and transport revenue was $90.8 million, an increase of 1.4%. Consolidated’s capital expenditures for the quarter were $119.2 million