Midco and Savage Communications Inc. (SCI) have signed an asset purchase agreement under which Midco will gain subscribers and addresses-passed in Minnesota.
SCI was founded in 1984 and serves almost 12,000 customers in central, eastern, and northeastern Minnesota. The company — presumably including the time it belongs to Midco — will pass almost 28,000 addresses by the end of the year.
The Midco acquisition of SDI is scheduled to close on October 1 and is subject to customary closing conditions including receipt of regulatory approvals. No financial details were included in the press release.
The two companies are familiar with each other. Midco chairman and CEO Pat McAdarah says the relationship goes back 25 years. At that time, Midco sold two small systems in Brainerd Lakes, Minnesota, to SCI.
“Over the last few years, I’ve been debating SCI’s future. With our large-scale fiber expansion project nearing completion, I want SCI to continue to grow its footprint and ability to serve customers,” SCI Broadband President and founder Ron Savage said in a press release. “I’ve decided the best path forward for SCI is to sell it to a like-minded company, and I found that in Midco.”
Last month, Midco — which also serves Kansas, North Dakota, South Dakota, and Wisconsin — said upgraded its customer experience offerings with a 12-point customer commitment. The company, which traces its history to 1931, has a network of 17,000 miles.
Midco and local provider KwiKom were the big winners in a Broadband Acceleration Grant Program broadband funding round announced in Kansas last July. KwiKom was awarded two grants totaling $1.9 million and Midco was awarded two grants totaling almost $1.8 million. The 10-year, $85 million program was created in the state in 2020. The round of funding announced was aimed at buildouts in 14 counties.
