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An affiliate of Macquarie Capital and GCM Grosvenor said today that it will purchase Alaska Communications Systems Group, Inc. The Alaska Communications acquisition is a $300 million, all-cash transaction, the telecom company announced today.

Under terms of the transaction, expected to close in the second half of 2021, Alaska Communications will become a privately held company. The deal is expected to close in the second half of 2021.

Alaska Communications’ network includes 155K fiber route miles, serving about 6700 FTTP locations. The company also has over 100K DSL connections. Earlier this year, it announced a CAF-II funded rural broadband expansion plan.

The Macquarie affiliate and GCM will acquire all the outstanding shares of Alaska Communications common stock for $3.00 per share in cash, a premium of 57% over Monday’s closing per-share price, though the agreement also permits Alaska Communications to seek a better deal for the next 30 days.

Alaska Communications’ board has already approved the transaction and is recommending that shareholders do the same. The company will have a special stockholders’ meeting to vote on the proposed merger “as soon as practicable after the mailing of the proxy statement to its stockholders.”

TAR Holdings, LLC, which owns approximately 8.8% of Alaska Communications’ common stock, has already entered into an agreement to approve the transaction, which is subject to stockholder approval, regulatory approvals and other customary closing conditions. The transaction has fully committed debt and equity financing, without any other financing conditions. Macquarie Capital and GCM will provide the financing

“This transaction with Macquarie Capital and GCM represents an exciting opportunity to enhance our financial position and expand our resources to better serve our customers,” said Bill Bishop, Alaska Communications President and CEO, in a prepared statement about the Alaska Communications acquisition. “Macquarie Capital has extensive experience navigating the complexities and issues associated with public-to-private transactions, as well as addressing the various regulatory regimes associated with communications infrastructure transactions.

“It also has deep telecommunications expertise and a strong track record of investing in capital intensive businesses, which will be critical as we deliver on our strategy to utilize our superior customer service and fiber-based network solutions in providing industry-leading telecommunications products and services,” Bishop added. “Finally, GCM’s Labor Impact Fund provides strategic value to our business, both through its experience in the telecommunications sector and in fostering partnerships with a unionized workforce.”

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