CONTERRA ANNOUNCES ACQUISITION OF TWO REGIONAL FIBER OPERATING COMPANIES
Combined Fiber Assets & Competitive Footprint Nearly Triple in Size
Charlotte, North Carolina—January 17, 2017: Conterra Ultra Broadband Holdings, Inc. today announced the acquisition of two regional optical fiber-based broadband businesses in its two largest operating regions, exponentially expanding Conterra’s fiber footprint to more than 6,200 route miles and 355,000 fiber miles. As a result of these transactions, Conterra now provides lit and dark fiber network services in seven primary states in the Southeast, Gulf Coast/Midwest and Western regions of the United States. The company now serves more than 3,500 “On-Net” locations including more than 500 owned and operated communication towers that support school districts and wireless carriers from coast to coast. The combined fiber network infrastructure will also expand Conterra’s “Near-Net” customer opportunities by nearly 5,000 enterprises, multi-tenant buildings, State/local government agencies and additional wireless carrier towers.
Now wholly-owned Conterra subsidiaries, Detel, based in Louisiana, and Broadplex, based in North Carolina, have been building and operating facilities-based lit and dark fiber and related technology networks within and around their home states for more than 15 years. They serve largely the same core customer bases as Conterra: K-12 School Districts, Wireless and Landline Carriers, Healthcare organizations, Government installations and mid-sized as well as Fortune 500 Enterprises. The founders and management teams of both Detel and Broadplex are staying on with Conterra as managers and significant owners to help support and grow their original businesses as well as assist with Conterra’s fiber expansion plans companywide.
Also as a result of these transactions, Conterra has added substantial sales, engineering, deployment and network operations capabilities to support its current and future customers primarily in the company’s Southeast and Gulf Coast spheres of operation. Metropolitan Statistical Areas in which the company operates broadband networks include: Charlotte, Raleigh, Greensboro, Winston-Salem and Asheville, North Carolina; Richmond, Virginia and Nashville, Tennessee; Fort Worth, San Antonio, El Paso and Tyler, Texas; Baton Rouge, Lafayette, Monroe and Shreveport, Louisiana; Tucson, Arizona; Albuquerque and Las Cruces, New Mexico; San Francisco, Fresno, Oakland and San Bernardino, California.
“We have been working closely with both Detel and Broadplex for years and plan to take advantage of the many benefits that our larger scale, operating efficiencies and local customer relationships will bring to our combined bandwidth infrastructure growth as a result of these transactions,” commented Conterra’s President and Chief Executive Officer, Steve Leeolou. “We are also delighted that Daryl Deshotel and his core team in Louisiana and Dr. Rocco DiSanto and his core team in the Carolinas will continue to provide transferable innovations, rapid and cost effective deployment capabilities and local competitive knowledge to our combined Conterra business plan,” added Mr. Leeolou.
Conterra is one of the largest remaining independent broadband infrastructure companies in the United States based on its fiber assets and revenues. The company is majority owned by Court Square Capital, a private investment firm with approximately $5-billion under management, with the remaining ownership largely held by Conterra’s management team. The company’s other institutional financial partners include Toronto Dominion Bank, Bank of America, CoBank, ING Capital and Antares, all of which provided financing support for the two transactions being announced today. Terms of the transactions are not being disclosed.