By Lisa Kerner
Charlotte, N.C., Aug. 6 - New Ulm Telecom, Inc. agreed to acquire Hutchinson Telephone Co. for some $62 million in cash. The overall transaction, including fees and working capital expenses, is estimated at $77 million.
Both companies' boards of directors have approved the deal, which is slated to close in the fourth quarter. New Ulm will merge into Hutchinson, which will continue as a New Ulm subsidiary in the reverse triangular merger.
The combined company will offer phone, video and internet services through more than 50,000 connections in Minnesota and Iowa.
"New Ulm and Hutchinson are both well-established companies with 100-year histories in South Central Minnesota," New Ulm president and chief executive officer Bill Otis said in a company news release.
"We believe the strategic combination of these two companies will enable us [to] take advantage of developing industry technologies and continue our commitment to provide excellent customer service in all of our communities," Otis added.
Williams & Co. Communications, Inc. and Lindquist & Vennum, PLLP advised New Ulm, which is based in New Ulm, Minn., and owns and operates phone, video and internet services in a number of Minnesota and Iowa communities.
Hutchinson was advised by Stifel Nicolaus & Co., Inc. and Leonard, Street and Deinard, PA. Stifel also issued a fairness opinion to the Hutchinson, Minn., telephone company's board.
| Acquirer: | New Ulm Telecom, Inc.
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| Target: | Hutchinson Telephone Co.
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| Transaction total: | $77 million
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| Announcement date: | Aug. 6
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| Expected closing: | Fourth quarter
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