HickoryTech Buys Enventis

MANKATO, Minn. -- HickoryTech Corporation (Nasdaq: HTCO)

HickoryTech Corporation today announced it has entered into a definitive agreement to acquire Enventis Telecom, a wholly owned subsidiary of ALLETE, Inc. (NYSE: ALE) for a purchase price of $35.5 million in cash, subject to normal working capital adjustments at closing. The acquisition will further enhance and add scale to HickoryTech’s existing fiber network and IP Telephony business. Enventis Telecom is a Minnesota-based regional provider of integrated fiber network, IP telephony, and data services, with 1,500 route miles of fiber network serving more than 300 business customers in over 40 communities in the Upper Midwest. Following consummation of the transaction, Enventis Telecom will become a wholly owned subsidiary of HickoryTech. HickoryTech will continue to operate Enventis as a separate entity while working toward the long-term integration.

“Enventis Telecom is a strategic acquisition that expands and accelerates HickoryTech’s business growth strategy,” stated John Duffy, president and CEO of HickoryTech. “This acquisition is a complement to our existing IP Telephony/data customer service business and to our existing fiber rings connecting Mankato to the Minneapolis/St. Paul metropolitan area and south-central Minnesota. We believe this acquisition will accelerate our growth in revenues and operating income, while improving the underlying fundamentals of an already solid firm.”

Don Shippar, president and CEO of ALLETE, said, “While Enventis is positioned for continued success, we realize that our current strategic direction and Enventis’ opportunities for expansion do not coincide. We believe HickoryTech will capitalize on Enventis’ diverse strengths and potential for growth.”

“Enventis strives to consistently provide our customers with the very best engineering expertise and networking solutions available,” said Rich Henderson, co-founder and president of Enventis Telecom. “We are pleased to maximize the potential of our company by joining with HickoryTech, which is equally focused on exceeding the needs of its business customers.” Current expectations are that the Enventis Telecom employees, including Henderson, will continue with the business following closing of the acquisition.

HickoryTech Corp.