Mattoon, Illinois — December 06, 2016 — Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) (“Company”) today announces it has entered a definitive agreement with ePlus Technology inc., and closed on the sale of its Enterprise Services equipment and IT Services business. As part of this transaction, Consolidated entered into a strategic partnership with ePlus, a leading nationwide systems integrator of technology solutions, to cross-sell both broadband network services and IT Services. This partnership will provide Consolidated’s business customers access to a broader suite of IT solutions, and will also provide ePlus customers access to Consolidated’s business network services.
“This transaction allows us extend our strategy of providing technology solutions to customers across all of our markets while we sharpen our focus on network-based, business and broadband solutions,” said Bob Udell, president and chief executive officer of Consolidated Communications. “We have formed a partnership with ePlus to continue to support our existing customers with IT Services and intend to expand that offering to our entire service area as we leverage ePlus’ national footprint.”
“Consolidated’s IT Services customers will gain access to ePlus’ full range of managed and professional services, leasing and lifecycle management tools, and nationwide coverage by our integration and logistics facilities,” said Mark Marron, chief executive officer of ePlus. “We are excited about the strategic partnership we have formed to cross-sell services across our geography, providing a full suite of integrated services to our customers.”
Consolidated’s Enterprise Services equipment and IT Services business, which was acquired with the Enventis acquisition in 2014, contributed approximately $55 million of revenue in fiscal 2015. The Company expects the transaction to enhance its revenue growth and margin profile going forward. There are approximately 55 employees who support the equipment business.
The agreement and closing were finalized on December 5, 2016. Foros acted as the sole financial advisor and Schiff Hardin acted as legal counsel to Consolidated Communications on this transaction.