Canadian private equity firm Novacap TMT has agreed to acquire Ohio-based fiber network operator Horizon Telcom for an undisclosed price.
Under terms of the agreement, Novacap will acquire the company from its current owners, who include over 280 shareholders. At the closing of the transaction, Novacap will continue to work with the existing management team and invest to grow the business throughout Horizon Telcom’s service area.
Novacap Horizon Telcom Acquisition
Upon completion of the acquisition and the finalization of new fiber builds, Horizon will operate 550,000 strand miles of fiber and 4,500 route miles of fiber in six states. Together with Novacap, Horizon intends to enhance its presence in the Columbus, Ohio market and extend its existing network closer to customer premises. In addition to its fiber network assets, Horizon also serves approximately 26,000 RGUs with its FTTN network in Ross County, Ohio.
The transaction continues Horizon’s long history of growth. The company began as a local telephone company more than 120 years ago and has more recently invested in technology and equipment to transition itself to become a provider of fiber-optic based services.
“Horizon has constructed a first-rate fiber-optic network and developed an outstanding reputation with customers,” said Ted Mocarski, a Novacap senior partner, in a prepared statement. “The acquisition of Horizon will represent the stepping-stone for Novacap’s vision of creating a multi-state fiber-optic provider in the Midwest. Horizon will continue to strive to offer comprehensive solutions to regional enterprises and telecommunications carriers, while also maintaining focus on providing the highest levels of customer service to the company’s local business communities.”
“This transaction is a very positive development for Horizon,” said Bill McKell, Horizon president and CEO, in a prepared statement. “Together with Novacap, we will have access to sufficient capital to increase our scale, extend our network and enhance our capabilities to the benefit of our customers, our employees and the local communities we serve.”
Other Novacap investments in the communications service provider area include FirstLight and Fibre Noire.