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Shenandoah finalizes purchase of Horizon Telcom

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In Short:

Shentel has completed the acquisition of Horizon Telcom, expanding its commercial fiber network in Ohio and adjacent states. The combined company now has around 15,400 fiber route miles. Shentel plans to re-brand Horizon’s fiber businesses to Glo Fiber and aims to reach 600,000 homes and businesses with Glo Fiber by 2026. The acquisition was funded through a combination of cash resources, tower portfolio sale proceeds, and stock issuance.

Shenandoah Completes Acquisition of Horizon Telcom

Shenandoah Telecommunications Company (Shentel) has successfully completed the acquisition of Horizon Telcom (Horizon). This move comes after Shentel sold the Tower Portfolio to Vertical Bridge for USD 309.9 million, as reported by TelecomTalk. Horizon operates as a commercial fiber provider in Ohio and neighboring states, catering to national wireless providers, carriers, enterprises, and government, education, and healthcare clients.

Horizon Telcom’s Profile

Shentel has highlighted that Horizon’s fiber network is the largest and most extensive across its operational area. With this acquisition, the combined entity now boasts approximately 15,400 fiber route miles spanning seven neighboring states. The addition of around 5,500 fiber route miles from Horizon strengthens this network. As part of the integration process, Shentel plans to re-brand Horizon’s commercial and residential fiber operations under the name Glo Fiber.

Network Expansion Plans

In a statement, Shentel expressed enthusiasm about entering the Ohio and Indiana markets, effectively doubling its commercial fiber presence and introducing new Glo Fiber greenfield fiber-to-the-home (FTTH) expansion areas. The combined company is now set to reach around 250,000 total fiber passings. The expansion into Ohio is projected to cover approximately 600,000 homes and businesses with Glo Fiber by the end of 2026. This strategic move is expected to strengthen the overall business by merging Horizon’s commercial fiber expertise with Shentel’s rapidly growing residential Glo Fiber segment.

Financing the Acquisition

To fund the acquisition, Shentel utilized a mix of existing cash reserves, proceeds from the tower portfolio sale, and the issuance of 7 percent Participating Exchangeable Perpetual Preferred Stock of a Shentel subsidiary to an affiliate of Energy Capital Partners. Additionally, the company issued approximately 4.1 million shares of Shentel common stock to an investment fund managed by affiliates of GCM Grosvenor, a unit holder of Horizon.

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