Iowa Telecom completes purchase of Minnesota company
Special to the Daily News
Newton-based Iowa Telecom completed its acquisition of Bishop Communications Corporation, headquartered in Annandale, Minn., for the purchase price of approximately $43.9 million.
Bishop Communications is a privately held holding company whose operations include the Lakedale Telephone Company, a rural telecommunications provider covering 378 square miles in central Minnesota.
The acquisition was completed on Friday.
“Lakedale Telephone Company and other Bishop Communications customers will continue to experience high quality telephone, Internet and television services from the same friendly, knowledgeable staff,” said Alan L. Wells, Chairman and CEO of Iowa Telecom in a press release. “Bishop Communications is a well-run operation and has been a pioneer in providing local telecommunications service in central Minnesota. We look forward to working with them as we continue to expand communications services throughout the Midwest.”
Bishop Communications will operate as a separate subsidiary of Iowa Telecom.
The company currently serves approximately 16,600 telephone access lines, 4,800 high-speed Internet customers and 3,800 video subscribers. For the year ended Dec. 31, 2007, Bishop generated revenues of $19.6 million and Adjusted EBITDA of $5.7 million.
Bishop’s Lakedale Telephone (Lakedale) subsidiary provides ILEC services to customers in six rural Minnesota exchanges. Five of Lakedale’s six exchanges are contiguous, including Annandale, Maple Lake, Montrose, Waverly and South Haven. The contiguous exchanges are located approximately 45 miles northwest of the Twin Cities and 25 miles south of St. Cloud. The remaining exchange, Paynesville, is located 20 miles northwest of the contiguous exchanges and 25 miles southwest of St. Cloud.
Iowa Telecom is the largest independent telephone company in Iowa and one of the 20 largest telephone companies in the nation.
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