Regional Midwest fiber broadband provider Omni Fiber has acquired Ohio Telecom. Terms of the transaction, which closed today, were not disclosed. It’s the latest example of private equity getting aggressive in fiber broadband.
Omni Fiber was created earlier this year via a $250 million commitment by Oak Hill Capital. The investment was made through Oak Hill Capital Partners VI, which according to Oak Hill, is its flagship fund. The aim was to bring 2 Gbps fiber broadband service to traditionally underserved small and mid-sized markets in the Midwest. Initial projects will be in Pennsylvania and Michigan in addition to Ohio.
Ohio Telecom, which was founded in 2002, primarily served the 419 area code, which includes Toledo, Bowling Green, Sandusky, Bryan, Fremont, Maumee, Defiance, Ashland, Norwalk, Tiffin and Napoleon. The company served and was headquartered in Port Clinton.
Existing Ohio Telecom markets including Port Clinton and Oak Harbor will be eligible for 2 Gbps networks as an expansion is completed. Omni Fiber says that it will begin construction early next year of all-fiber networks in Sandusky, Perkins Township and Fremont, which are in the same area. Business and institutional customers served by Ohio Telecom will be able to upgrade to Omni Fiber’s all-fiber network.
Omni Fiber has begun or completed work in Bellevue, Clyde, Dover, Huon, Shelby and Tiffin, OH.
The company “looks forward to leveraging the expertise of the Ohio Telecom team as we expand our state-of-the-art fiber network across Northern Ohio,” Omni Fiber CEO Darrick Zucco said in a press release. “We look forward to building upon Ohio Telecom’s impressive 20-year history and welcoming their employees and customers into the Omni Fiber family.”
Omni Fiber provides all-fiber networks that provide broadband Internet, TV and phone services to business and residential customers in the Midwest. It provides services as fast as 2 Gbps with no hidden fees or data caps.
Ohio Telecom founder and president Michael Christiansen will stay with the combined company. Millitzer Capital represented Ohio Telecom in the transaction.