After securing FCC approval, Consolidated Communications Holdings, Inc. has closed the second stage of the previously disclosed $75 million investment transaction with an affiliate of Searchlight Capital Partners, L.P.
The investment is part of the aggregate $425 million investment from Searchlight affiliates to acquire 35% of Consolidated. Seachlight’s investment is expected to accelerate Consolidated’s fiber investment and return the company to revenue growth. Searchlight will have two board seats and has selected David Fuller and Andrew Frey to serve on the Consolidated Board, and Steve Weed to serve as a non-voting board observer.
Consolidated is in the midst of a five-year growth initiative, and fiber infrastructure is the lynch pin of the expansion aimed at giving 1.6 million consumers and small businesses access to multi-gigabit, fiber broadband services.
The company said that it will continue investing in commercial and carrier expansion, leveraging these fiber builds.
“We’re pleased to have closed on the second step of the Searchlight investment and have a fully-funded growth plan to accelerate and enable fiber-to-the-home broadband services to more than 1.6 million passings by 2025 across the communities we serve,” said Bob Udell, Consolidated Communications president and chief executive officer, in a prepared statement. “With Searchlight as our strategic partner, we’re able to capitalize on our growth opportunities and transform Consolidated Communications into a leading fiber broadband provider.”
“We are very pleased with Consolidated’s impressive operational and fiber build progress thus far in 2021,” said Andrew Frey, Searchlight Capital partner, in a prepared statement. “The transformation of Consolidated into a leading U.S. fiber operator is well underway. We are excited to continue to support the Company as it accelerates its investment in fiber, and drives toward revenue growth.”