Source: HickoryTech Press Release

HickoryTech Corporation announced that it has entered into a definitive agreement to acquire IdeaOne Telecom Group, LLC, a metro fiber network provider in Fargo, North Dakota, in an all-cash transaction valued at $28 million with routine adjustments for capital expenditures and working capital.

"This acquisition further advances our strategy of growing our business and broadband services," said John Finke, HickoryTech president and chief executive officer. "Last year, we extended our fiber network to Fargo. This transaction gives us immediate access to the market, making our entire portfolio of business services available to IdeaOne customers. The completion of our Broadband stimulus route from Brainerd, Minn. to Fargo, North Dakota in 2012 will further enhance our capabilities and services in this market."

IdeaOne provides data networking, Internet, colocation, phone and hosting services to approximately 3,600 business and residential customers in the Fargo area. The company has 40 employees. The acquisition will add 225 fiber route miles to HickoryTech's regional network. The fiber network facilities, which extend to 650 on-net fiber-lit buildings, include: multiple 10 GB fiber rings, ethernet capabilities, soft-switching infrastructure, and colocation services.

"We are confident HickoryTech and Enventis will provide quality support and expanded services to IdeaOne customers," said Bob Johnson, IdeaOne president and chief executive officer. "Our customers and the greater Fargo and Moorhead area will benefit from the redundant, regional fiber network and expanded capabilities as these two companies join together. Like IdeaOne, HickoryTech is committed to providing local service and quality support to their customers."

IdeaOne recorded fiscal 2010 revenue of $11.1 million, the majority of which was from the business customer base. This transaction adds approximately 1,900 business customers and 1,700 residential customers.

"We are very pleased to announce the combination of HickoryTech and IdeaOne," Finke said. "The employees of IdeaOne have built a solid company and provided their customers with exceptional customer service and quality products. We feel our two companies will blend together well and we are pleased to welcome them to the HickoryTech family."

The boards of both companies have approved the transaction, which is expected to close in the first quarter of 2012, subject to certain conditions, including necessary regulatory approvals from state and federal authorities.