Consolidated Communications Enterprise Services has entered into an agreement to sell its Kansas City assets to funds managed by Alinda Capital Partners. The asset sale is an all-cash transaction resulting from the company’s strategic asset review and focus on its fibre expansion plans in its core regions.
Consolidated’s Kansas City operations includes approximately 19,000 consumer fixed voice subscriptions, 13,000 consumer fixed broadband subscriptions and 1,900 commercial subscriptions and contributed approximately USD50 million of revenue in fiscal 2021. The closing of the agreement is subject to closing conditions and customary regulatory approvals and is expected to be completed in the second half of 2022.
Bob Udell, CEO and President of Consolidated Communications, commented: ‘The asset sale does not impact our fibre expansion plans or plan to upgrade 1.6 million total passings as we did not have fibre upgrade plans in this market. The divestiture is consistent with our strategic market review and goal to either invest as part of our fibre expansion plans or pursue monetisation of assets.’