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An Ohio-based service provider with a fiber network that spans more than 7,200 miles will likely come under new ownership after the company entered into an agreement to be acquired in a deal worth $385 million.
Shentel, which provides broadband services through cable and fiber optic networks to customers in the Mid-Atlantic, noted that the transaction is subject to regulatory approval. The company said their acquisition of Horizon is expected to close in the first half of 2024.
The deal will include $305 million in cash considerations and $80 million of Shentel common stock, Shentel’s announcement stated.
“The acquisition of Horizon is a transformative transaction that we believe will allow us to accelerate our fiber first strategy by doubling the size of our commercial fiber business and creating a new beachhead for our Glo Fiber business,” said Christopher E. French, Shentel’s president and CEO.
French, whose comments were included in the announcement on Shentel’s website, said his company now expects to pass 150,000 additional homes with fiber in greenfield markets, targeting 600,000 total passings by the end of 2026.
“Horizon and Shentel share a similar history and a passion for outstanding local customer service while providing state-of-the-art technologies,” he said. “We believe our teams’ core competencies will complement one another, translating to a stronger combined business.”
According to Shentel, Horizon’s networks pass 14,000 homes and businesses and 18,000 homes in greenfield markets that are adjacent to its commercial fiber network. The company described Horizon as “a leading commercial fiber provider in Ohio and adjacent states serving national wireless providers, carriers, enterprises, and government, education and healthcare customers.”
The announcement on Shentel’s website said 64 percent of Horizon’s revenues are derived from commercial customers.
Jim Capuano, the CEO of Horizon, said Horizon is proud of the success it has experienced in partnerships with their soon-to-be former owners.
“The transaction with Shentel creates an exciting opportunity for our customers and the communities we serve to continue to receive best-in-quality broadband service and an opportunity for our employees to continue to be integral contributors to a leading super-regional provider,” he said, according to Shentel’s announcement.
According to financial information included with Shentel’s announcement, “Horizon has been awarded over $57 million in grants from the Ohio Broadband Authority and NTIA to construct fiber to 2,500 unserved homes, expand its middle-mile fiber network to eight underserved counties in Ohio, and increase its network backbone capacity up to 400 Gbps.”
The deal to acquire Horizon equates to a monetary value of $51,000 per fiber route mile, according to Shentel’s announcement.
Shentel currently operates a regional network that spans over 9,000 miles and includes 220 macro cellular towers, a summary of the company said.
