An announcement on Monday confirmed that EQT Infrastructure has acquired Lumos Networks for about $950 Million.
The terms of agreement of this deal is that EQT Infrastructure will be acquiring all Lumos Networks’ common stocks for $18/share. This acquisition will be finalized by the end of the quarter three of fiscal 2017.
A released mentioned that EQT Infrastructure is an alternative investments firm, which is leading in their field with more than 32.67 Billion Dollars in raised capital in the 21 funds and EQT also has portfolio companies all across the globe and they work with them to achieve operational excellence, market leadership, and sustainable growth.
This merger will be a step forward in helping Lumos Networks.
All the shareholders of record of common stocks in Lumos Networks would receive $18 per share in cash, which is 18.2 percent premium to February 17’s closing price of $15.23 according to the release.
Lumos Networks, which split from nTelos in the year 2011, is a Waynesboro-based provider in the region of Mid Atlantic and they serve business, residential, and carrier customers offering IP, voice, and data services over a dense fiber network. It is one of the top ten employers in the Waynesboro area.
The City Councilman of Waynesboro, Jeffery Freeman mentioned that he wasn’t made aware of the particulars that are in the acquisition, therefore he would wait till he gets enough information before commenting on the matter. The council will discuss this further when more information becomes available.
Elzena Anderson, the city councilwoman also had similar comments when she was contacted on Monday. She said that she had received some information on it, but until she goes over it fully, she won’t comment further. The other council members were not reachable.
The services of Lumos are spread across Virginia, Kentucky, Ohio, West Virginia, and portions of Pennsylvania and Maryland. It has a fiber network of about 9204 route miles and 475507 strand miles connecting 1297 unique fibers to cell sites, 36 data centers, 1642 FTTC connections in total, and seven of the data centers at colocation facilities. Lumos also has 1984 on net buildings and 3300 on net locations in total.
This acquisition was evident from nearly two years as the company saw huge layoffs of 40 major positions in 2015 spring and the stepping down of the vice president last year.
Jan Vesely, the director at EQT Partners investment advisor said in a release that they are really excited about this opportunity as they have been impressed by the strategic vision of the company and their execution since becoming a public company in the year 2011. They are looking forward to work together with the team at Lumos Networks, bringing in the deep expertise of EQT’s fiber and telecommunications sector, which would support the expansion and growth of the company.