ATN closes $343 million Alaska Communications acquisition

23 July 2021 | Melanie Mingas

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ATN International, Inc. and its financial partner Freedom 3 Capital, LLC, have completed their acquisition of Alaska Communications Systems Group in an all-cash transaction valued at $343 million.

ATN International is a listed holding company with interests in communications and renewable energy technologies, while Freedom 3 Capital says it "invests in companies at inflection points".

In recent months, Alaska Communications has partnered with OneWeb to offer LEO services; it has launched Xtreme Internet, allowing it to offer up to 1Gbps speeds to select residential locations; and this week announced its AKXinternet.

In 2020 it expanded broadband service to more than 3,700 locations in underserved areas of Alaska.

Michael Prior, chairman and CEO of ATN, said: “We are pleased to report that we have completed this acquisition. The Alaska Communications team’s emphasis on customer satisfaction and their strategic investments in fibre-based enterprise and wholesale services have created a great foundation for us to build upon.

"We intend to draw upon our operational resources and expertise as well as the capabilities of our partners at Freedom 3 to take advantage of the opportunities we have identified together in the Alaska Communications markets.”

Bill Bishop, president and CEO of Alaska Communications, added: "Our work with the ATN team already has demonstrated a shared strategy to enhance our fibre network services, deliver superior customer care and drive new services for our customers in Alaska.”

In January, Massachusetts-based ATN put in an all-cash agreed bid of $332 million for the company, beating a previous offer from Macquarie Capital and GCM Grosvenor, worth just $300 million.