More Fiber M&A: HickoryTech Acquires IdeaOne

December 6th, 2011 by · 3 Comments

Just when you thought the telecom M&A scene was winding down for the year, Minnesota-based HickoryTech (NASDAQ:HTCO, news, filings) is getting one in for the holidays. HickoryTech is spending $28M in cash to acquire North Dakota’s IdeaOne Telecom, which operates a metro fiber network in Fargo. HickoryTech’s Enventis subsidiary expanded westward into Fargo last year, so adding depth there is a natural extension of the company’s geographical coverage.

The purchase adds 225 route miles to HickoryTech’s network assets, as well as 3,600 business and residential customers, and revenues that amounted to $11.1M in 2010. But the most interesting number in the press release is the lit building count of 650 which is quite a large number for a city of less than 100,000 people.  It’s also more than twice as many on-net buildings as Enventis has, primarily in the Minneapolis metro area of course.

HickoryTech expects to close the deal in the first quarter, and will finance the purchase with existing cash and available debt from its current credit facility.  I don’t yet have a fiber map link for IdeaOne, though I’d certainly like to see one.

For North Dakota, this has been an active couple of months on the fiber front, as there aren’t that many alternative operators up there and 360Networks’ route through the region just changed hands last week too.

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Categories: Mergers and Acquisitions · Metro fiber

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3 Comments So Far

  • bemink says:

    We just did a deal in North Dakota. The big dog in ND is Dakota Carrier Networks (DCN). They are owned by & have network from 15 rural carriers. DCN has their HQ in Fargo and just built a new NOCC/small Data Center in Bismarck. here is a network link…

  • Baylink says:

    Shame the president of that company isn’t a son of Japanese and Scottish parents named Ori Doch, isn’t it?

  • Interesting and logical acquisition when more private telecom operators are selling out at high prices. For pricing multiples of Hickory Tech Corporation’s acquisition of IdeaOne Group LLC. visit The web site produces and distributes Liquidity Event Case Studies on private companies that have been sold. This could interesting to owners of private companies that are considering their exit strategies, or their advisers. IdeaOne sold for $2.00 per $1.00 revenue . Check out the tangible book value of IdeaOne…surprising.

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