HickoryTech Corporation (NASDAQ: HTCO) recently entered into an agreement to sell its Enterprise Solutions subsidiary, based in Roseville, Minn., a suburb of St. Paul, to Skyview Capital, LLC, a privately held investment firm based in Los Angeles. Terms were not disclosed. The Enterprise Solutions subsidiary, formally known as Collins Communication Systems Company, provided IP Telephony, call center management and data network solutions, primarily through Nortel hardware solutions.
“The sale of Enterprise Solutions is an important step for HickoryTech, both strategically and financially,” said John Finke, president and chief executive officer. “This divestiture allows us to sharpen our focus on providing the highly-valued, integrated solutions for our business customers in the Minneapolis and St. Paul area.”
“In addition, the transaction will strengthen our balance sheet and eliminate operating losses as well as provide a tax benefit,” Finke said. “Our business plan remains focused on providing our customers with business solutions including IP Telephony, data network and system integration products and services through our Enventis business.”
HickoryTech will continue to sell Nortel products and related services through its Telecom Sector to its customers in southern Minnesota. These customers will experience no change in support as a result of the divestiture of Enterprise Solutions.
Post closing, Oppenheimer will work closely with the company’s management to ensure a seamless transition of the business to a fully autonomous entity. The Enterprise Solutions business will remain headquartered in the Twin Cities metro area.
This transaction is a sale of the stock in the Collins Communications subsidiary and includes approximately 70 employees who work at HickoryTech’s Enterprise Solutions business.
About Skyview Capital
Skyview Capital, LLC ( http://www.skyviewcapital.com/ ), a private investment firm headquartered in Beverly Hills, Calif., specializes in the acquisition and continuous management of “systems-critical” enterprises in the areas of technology, telecommunications, business services, and niche manufacturing. By leveraging its operational capabilities and financial acumen, Skyview systematically enhances the long-term sustainable value of the businesses it acquires.
About HickoryTech
HickoryTech Corporation is a diversified communications company headquartered in Mankato, Minn., with operations in Minnesota and Iowa and approximately 410 employees. In its 109th year of operation, HickoryTech offers a full array of telecommunications products and services to business and residential customers. The Telecom Sector offers local voice, long distance, Internet, Broadband services, Digital TV, and IP networking. The Enventis Telecom Sector provides IP-based voice and data services and network solutions on a state wide SONET-based network. The Information Solutions Sector develops telecom and carrier access billing solutions. To learn more about HickoryTech Corporation, visit the company’s Web site at http://www.hickorytech.com/ .