The network M&A marketplace hasn’t been too busy lately, but as springtime arrives that may be changing. Yesterday, Consolidated Communications revealed it has received a “Take Private” offer from Searchlight Capital Partners and British Columbia Investment Management Corporation.
Searchlight already owns 34% of Consolidated, according to filings. They bought that piece back in 2020/2021 for $425M. The proposed deal would pay Consolidated’s shareholders $4.00 per share in cash to buy the rest of the company. Consolidated’s board will establish a special committee of independent directors to evaluate the proposal. The deal would need to be approved by a majority of shares not owned by those doing the buying.
It’s not the first time Searchlight has contemplated such a move, as just over a year ago they filed SEC documents about the possibility. Searchlight and BCI also own pieces of Ziply fiber out in the Pacific Northwest. Both Ziply and Consolidated have been quite active lately in rolling out FTTH within and adjacent to their ILEC territories.
Consolidated got started originally in Illinois and Texas, but through inorganic and organic means has a footprint spanning 20 states. It’s deepest presence today is in New England, which it entered via the Fairpoint acquisition.
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