SDC Capital acquires 48% of ALLO for USD197m

5 Oct 2020

Funds managed by SDC Capital Partners have committed to pay USD197 million for an approximately 48% ownership stake in Nebraska-based fibre operator ALLO Communications. The cash injection will provide ALLO with capital to continue expanding its all-fibre network into additional communities in the Midwest. The investment is expected to close in October 2020, subject to certain closing conditions.

ALLO was founded in 2003 and started its fibre rollout in 2004. ALLO currently has operations in Lincoln, Hastings, North Platte, Ogallala, Imperial, Bridgeport, Scottsbluff, Gering, Alliance and Norfolk (all Nebraska); and Fort Morgan and Breckenridge (Colorado). As of 30 June 2020 ALLO served more than 53,000 residential subscribers and thousands of businesses as well as governmental entities across the twelve locations.

Majority shareholder Nelnet acquired 92.5% of the outstanding equity in ALLO on 31 December 2015. Incoming shareholder SDC Capital currently owns a number of data centres in the US and Brazil, as well as dark fibre platform SummitIG and infrastructure firm Fatbeam.

United States, ALLO Communications, SDC Capital