Consolidated Communications Enterprise Services, Inc. announced that it has agreed to sell its Kansas City assets to funds managed by Alinda Capital Partners. The company declined to disclose how much money it will receive through the all-cash transaction, which is expected to close in the second half of this year.
The company says the deal is a result of its strategic asset review and will allow it to focus on its fiber expansion plans in its core regions; it also sold assets in Ohio last year (see “Consolidated Communications to sell Ohio networks to Middle Point Home Telephone”). Kansas City operations include approximately 19,000 consumer subscribers, 13,000 consumer broadband subscribers, and 1,900 business subscribers. Consolidated says the operations generated about $50 million in revenue in fiscal 2021.
“We are thrilled to have reached an agreement with Alinda, a buyer who is committed to leveraging the Kansas City network we have built to bring new services and local direction to the area,” said Bob Udell , President and CEO of Consolidated Communications. . “The Kansas City market is a hybrid cable-fiber DOCSIS 3.1 network. The asset sale does not impact our fiber expansion plans or our upgrade plan of 1.6 million total runs, as we had no upgrade plans. level of fiber in this market. The divestiture is consistent with our strategic review of the market and our objective to invest in our fiber expansion plans or to pursue asset monetization.
“We are excited to empower an experienced management team and dedicated employees in Kansas City to provide broadband and network solutions to residential, business and carrier customers in Kansas City,” said Jim Metcalfe, managing partner at Alinda, which describes itself as “a digital infrastructure specialist” focused on mid-market core-plus infrastructure investments in North America and Europe. “Our mission is to provide first class service to customers through a locally based and operated business by investing in people, systems, services and community.”
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