Cogeco Communications Inc. Announces that Atlantic Broadband Will Acquire the Ohio Broadband Systems of WideOpenWest

MONTRÉAL and QUINCY, Mass., June 30, 2021 /PRNewswire/ - Today Cogeco Communications Inc. (TSX: CCA) announced that its subsidiary, Atlantic Broadband, has entered into a definitive agreement with WideOpenWest, Inc. (WOW) to purchase all of its broadband systems located n Ohio ("the Ohio broadband systems"). 

The WOW Ohio broadband systems pass approximately 688,000 homes and businesses in Cleveland and Columbus and serve approximately 196,000 Internet, 61,000 video and 35,000 telephony customers, as of March 31, 2021. For the twelve months ended March 31, 2021, revenue was US$244 million and pro forma adjusted EBITDA, including adjustments to reflect the expected cost structure of Atlantic Broadband and run-rate synergies, would have been US$103 million. 

"The acquisition of WOW's Ohio broadband systems allows us to add significant scale to our growing and profitable U.S. broadband business," said Philippe Jetté, President and Chief Executive Officer of Cogeco Communications Inc., the parent company of Atlantic Broadband.  "The acquisition also represents a strong strategic fit for Cogeco Communications as it is complementary to Atlantic Broadband's existing footprint and capitalizes on its existing platform. Under the guidance of Atlantic Broadband's experienced management team, we are in a unique position to grow our customer base, revenues and earnings, and to pursue our market expansion strategy."

"We are taking a major step in advancing Atlantic Broadband's high-growth strategy by expanding our reach beyond the east coast footprint with attractive markets, that will be strongly receptive to our customer-centric focus, superfast Internet, best-in-class managed WiFi and advanced video services," said Atlantic Broadband President, Frank van der Post. "The Ohio broadband systems' geographic fit with our Pennsylvania operations, combined with our success in winning customer share in competitive markets and our experience integrating acquired properties, will ensure operational efficiencies, a seamless transition for customers, and strong growth in these markets. To support us in our future growth plans, we look forward to welcoming our new colleagues located in Ohio into the Atlantic Broadband family."

Atlantic Broadband has entered into a Transition Service Agreement which will ensure a smooth transition period and allow Atlantic Broadband to further upgrade the network and launch its products and services, including a state-of-the-art IPTV platform.

The acquisition has significant strategic benefits including: 

• Adds scale to Cogeco Communications' U.S. broadband services segment which continues to exhibit superior growth and is expected to keep generating strong operating margins. Atlantic Broadband's Internet service customers will increase by 38 percent from approximately 511,000 to 707,000 pro forma the acquisition. With this acquisition, more than half of Cogeco Communications' revenue will be generated by the U.S. business.

• Expands Atlantic Broadband's geographical footprint in markets with very attractive demographic profiles and economies.

• Leverages Atlantic Broadband's product and sales expertise to increase the customer base and deliver superior growth.

• Network footprint reaches a sizable portion of the Columbus and Cleveland markets, making it easier to operate and to market products.

• Quality network, with 100 percent of homes passed served by a DOCSIS 3.1 platform with speeds of 1 Gbps offered in the entire footprint.

The Ohio broadband systems will be purchased for US$1.125 billion. In conjunction with the transaction, Atlantic Broadband expects to realize tax benefits with a present value of approximately US$140 million. These benefits are mostly due to the tax amortization of intangible assets in an asset purchase transaction where such intangible assets are stepped up to current market value. Post the Transition Service Agreement period, Atlantic Broadband expects to achieve run-rate annual synergies of US$2 million. After adjusting for these tax benefits and synergies, the purchase price represents a multiple of approximately 9.6x pro forma adjusted EBITDA for the twelve month period ended March 31, 2021. The purchase price is subject to customary closing adjustments. 

The purchase price and transaction costs will be financed through a US$900 million committed secured debt financing at the Atlantic Broadband level, and excess cash on hand. The transaction is subject to regulatory approvals along with other customary closing conditions and is expected to close in the first quarter of fiscal 2022.

APG and Fiera Infrastructure Complete Purchase of Conterra Networks

CHARLOTTE, N.C. and NEW YORK and TORONTO, June 30, 2021 - Conterra Ultra Broadband Holdings, Inc. ("Conterra Networks", "Conterra" or "the Company") today announced that affiliates of APG Group NV ("APG") and affiliates of Fiera Infrastructure Inc. ("Fiera Infrastructure"), along with significant participation by the Company's senior management team have closed on the purchase of the company from affiliates of Court Square Capital Partners ("Court Square") and certain other indirect equity holders of Conterra (the "Transaction"). 

Conterra Networks, headquartered in Charlotte, North Carolina, is one of the largest independent local providers of fiber-based services in the United States, with a 13,000-route mile fiber network that brings high-capacity customized middle and last-mile fiber and fixed wireless services to enterprise, carrier, education, government and data center customers across 21 states in the Southeast, South Central and Western US.

Craig Gunderson, President & CEO of Conterra, commented, "On behalf of the Conterra management team and our employees, we want to thank the Court Square team, our founding management team and our employees for guiding and supporting the growth of Conterra.  We are excited to be partnering with APG and Fiera Infrastructure to accelerate our expansion plans in Tier II and Tier III markets through the rapid expansion of our fiber networks, strategic acquisitions and enhanced fiber-based solutions, while remaining fully committed to delivering an exceptional customer experience."

APG is one of the largest pension fiduciary asset managers in the world, working for over 22,000 employers and providing the pension for one in five families in the Netherlands (approximately 4.7 million participants).  APG is one of the most active infrastructure investors globally, including a growing global presence across the telecommunications sector.  Steven Hason, Americas Head of Real Assets, commented, "On behalf of our clients, APG is pleased to announce this investment in Conterra Networks.  APG's approach to investing in digital infrastructure complements Conterra's long-term growth plans.  This investment will position Conterra to provide vital infrastructure to their growing customer base in Tier II and III markets well into the future.  APG looks forward to our partnership with both Fiera Infrastructure and the Conterra management team."

Fiera Infrastructure acquired a significant equity interest in the Company in April 2019, and the Transaction represents the culmination of Fiera Infrastructure's plan to acquire additional equity interests.

Fiera Infrastructure is a leading global mid-market direct infrastructure investor and an affiliate of Fiera Capital Corporation (TSX: FSZ).  Fiera Infrastructure's interests in Conterra are held in its EagleCrest Infrastructure strategy.  "Fiera Infrastructure looks forward to working closely with our new partner APG in support of Conterra's solid management team and employee base as they continue to execute upon their expansion strategy," said Alina Osorio, President of Fiera Infrastructure.  Jamie Crotin, Managing Director of Fiera Infrastructure, added that "Conterra provides a very strong platform on which we will continue to grow the Company, through both organic network builds and acquisitions."

About Conterra Networks
Founded in 2001, and now operating approximately 13,000 fiber route miles, Conterra is one of the largest independent providers of fiber-based services in the United States.

About APG
As the largest pension provider in the Netherlands APG looks after the pensions of 4.7 million participants. APG provides executive consultancy, asset management, pension administration, pension communication and employer services. We work for pension funds and employers in the sectors of education, government, construction, cleaning, housing associations, sheltered employment organizations, medical specialists, and architects. APG manages approximately €577 billion (March 2021) in pension assets. With approximately 3,000 employees who work from Heerlen, Amsterdam, Brussels, New York, Hong Kong, Shanghai, and Beijing.

APG has been an active infrastructure investor since 2004, investing approximately €16.0 billion to date and managing 36 direct stakes in portfolio companies. APG's investments include assets within energy and utilities, telecommunications, and transport infrastructure. APG's Global Infrastructure team is comprised of 35 investment professionals. For more information, please visit www.apg.nl

About Fiera Infrastructure
Fiera Infrastructure is a leading global mid-market direct infrastructure investor operating across all subsectors of the infrastructure asset class. Led by a team of highly experienced and specialized professionals, the firm leverages strong global relationships, with a local presence in both Toronto, London and New York. Its rigorous approach to investment and asset management aligns with its long-term approach. Fiera Infrastructure has assets under management and commitments of C$2.7 billion as of March 31, 2021. Fiera Infrastructure has invested in 35 infrastructure assets across utilities, telecommunications, transportation, renewables and PPPs.   For further information, please visit http://www.fierainfrastructure.com

About Court Square
Court Square is a middle market private equity firm with one of the most experienced investment teams in the industry. Since 1979, the team has completed over 230 investments, including several landmark transactions, and has developed numerous businesses into leaders in their respective markets. Court Square invests in companies that have compelling growth potential within the business services, general industrial, healthcare, and technology and telecommunications sectors. The firm has $7.3 billion of assets under management and is based in New York, N.Y. For more information on Court Square, please visit www.courtsquare.com.

Advisors
Weil, Gotshal & Manges LLP acted as corporate counsel and Harris, Wiltshire & Grannis LLP served as regulatory counsel to Fiera Infrastructure and APG, and Goulston & Storrs PC served as legal counsel to APG. TD Securities and Evercore served as financial advisors, and Dechert LLP acted as corporate counsel to Conterra and Court Square and Morgan, Lewis & Bockius LLP served as regulatory counsel to Conterra.  

SOURCE Conterra Ultra Broadband Holdings, Inc.

KKR to Acquire Ensono

DOWNERS GROVE, Ill., April 14, 2021 - Ensono, a leading hybrid IT services provider, and KKR, a leading global investment firm, today announced that KKR has signed a definitive agreement to acquire Ensono from Charlesbank Capital Partners and M/C Partners. The new investment follows multiple years of strong performance by Ensono, including robust growth in 2020 and its recently completed acquisition of Amido, a UK-based cloud native consultancy.

Ensono provides a comprehensive suite of services that help enterprises manage, optimize and modernize their IT systems across mainframe, cloud and hybrid infrastructure. Charlesbank and M/C Partners acquired the company in 2015 as a corporate carve-out. Since rebranding as Ensono in 2016, the company has achieved impressive growth in new clients and revenue. Ensono will benefit from KKR's deep technology experience and global resources to help it achieve new heights as it continues to establish itself as a leading managed service provider to medium and large enterprises.

"As we embark on our next chapter with KKR, Ensono will continue to provide clients with transformational solutions that help them operate for today and optimize for tomorrow," said Jeff VonDeylen, CEO of Ensono. "Our initial investors played an important role in helping us establish our business and brand and funding our growth.  With the support of KKR, we will continue to grow and invest in our future as we drive innovation to meet the changing needs of our clients. We are fortunate to be in an industry where the need for our services has not only grown but diversified into exciting new areas of potential growth."

"Digital transformation across industries is driving an increased need for comprehensive service providers to help simplify IT infrastructure management for enterprise clients," said Webster Chua, Partner at KKR. "Ensono is a proven leader in delivering hybrid solutions for clients with complex IT environments, and we are thrilled to support the Ensono team on its next phase of growth and development."

"We are proud that our investment enabled Jeff and his outstanding management team to achieve their ambitious vision of establishing Ensono as a global leader in hybrid IT," added Michael Choe, Managing Director and CEO of Charlesbank Capital Partners, and Gillis Cashman, Managing Partner of M/C Partners, in a joint statement. "We are thrilled about Ensono's new investment from KKR and look forward to seeing its success continue as the company adds to its portfolio of innovative service options."

KKR is making the investment primarily from its Americas XII Fund. The investment adds to KKR's experience helping to grow leading global technology businesses, including GoDaddy, Internet Brands, Epicor, BMC, Optiv, Calabrio and 1-800 Contacts.

The transaction is expected to close within the next 60 days, subject to regulatory approvals and other customary closing conditions. Financial terms were not disclosed.

UBS Investment Bank and Guggenheim Securities, LLC are serving as financial advisors to Ensono. Morgan Stanley & Co LLC and RBC Capital Markets, LLC are serving as financial advisors to KKR. Goodwin Procter LLP is providing legal counsel to Ensono and Simpson Thacher & Bartlett LLP is serving as KKR's legal counsel.

About Ensono
Ensono helps IT leaders be the catalyst for change by harnessing the power of hybrid IT to transform their businesses. We accelerate digital transformation by increasing agility and scalability through infrastructure modernization and migration to public cloud. Our broad services portfolio, from mainframe to cloud, is powered by an award-winning IT insights platform and is designed to help our clients operate for today and optimize for tomorrow. We are certified experts in AWS and Azure and recognized as Microsoft Datacenter Transformation Partner of the Year. Ensono has over 2,400 associates around the world and is headquartered in greater Chicago. Visit us at www.ensono.com.

About KKR
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com and on Twitter @KKR_Co.

About Charlesbank Capital Partners
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private investment firm with more than $15 billion of capital raised since inception. Charlesbank focuses on management-led buyouts and growth capital financings, as well as opportunistic credit and technology investments. The firm seeks to build companies with sustainable competitive advantage and excellent prospects for growth. For more information, please visit www.charlesbank.com.

About M/C Partners 
M/C Partners is a private equity firm focused on small and mid-size businesses in the communications and technology services sectors. For more than three decades M/C Partners has invested $2.2 billion of capital in over 130 companies, leveraging its deep industry expertise to understand long-term secular trends and identify growth opportunities. The firm is currently investing its eighth fund, partnering with promising companies and empowering strong leaders to accelerate growth, optimize operations, and build long-term value. For more information, visit www.mcpartners.com.

Altice USA to Acquire Morris Broadband

NEW YORK - Altice USA (NYSE: ATUS) today announced it has entered into a definitive agreement to acquire the assets of Morris Broadband, LLC (“Morris Broadband”). The transaction will expand Altice USA’s footprint in North Carolina, where it already has a presence with its Suddenlink business, and implies an enterprise value of $310 million total for the Morris Broadband business on a debt-free and cash-free basis. Following this acquisition, North Carolina will represent the sixth largest state for Altice USA out of its 21 states of operations in terms of number of residential customers, demonstrating the Company’s commitment to invest heavily in the region with additional resources and network investments.

Morris Broadband is a rapidly growing broadband communications services company providing high-speed data, video and voice services to approximately 36,500 residential and business customers in western North Carolina. As of December 31, 2020, Morris Broadband passed approximately 89,000 homes throughout growing communities including Hendersonville, Franklin, Sylva, Nebo and West Jefferson with broadband penetration of approximately 35%.

Dexter Goei, Chief Executive Officer of Altice USA said: “We are very excited to extend Altice USA’s footprint into neighboring communities in North Carolina by acquiring the very fast-growing Morris Broadband. Morris is a perfect fit for Altice as we are accelerating our network expansion with increased investment in edge outs, upgrades of underdeveloped systems and FTTH deployment to drive customer, revenue and cash flow growth. We look forward to providing our high-quality broadband, video, mobile, and news offerings to thousands of additional homes and businesses, with a great opportunity to further penetrate Morris’ existing homes passed and by expanding more into adjacent areas.”

William S. “Billy” Morris III, Chairman of Morris Communications Company, LLC said: “It has been a pleasure for the Morris Family to serve the residents of western North Carolina for the last 12 years. We are confident that Altice will continue to provide superior services to the region.”

As part of Altice USA, Morris Broadband will benefit from enhanced scale, operating efficiencies and further investment support that are at the core of the Altice business model and strategy, including accelerated new homes build. Altice USA’s commitment to innovation, best-in-class services, long-term network investments and customer service creates significant benefits and long-term value for customers, employees and shareholders.

Morris Broadband generated approximately $13 million in Adjusted EBITDA on an annualized basis for the quarter ended December 31, 2020 (“Q4 LQA”). The purchase price represents a multiple of Morris Broadband’s Q4 LQA Adjusted EBITDA of approximately 24.1x before taking into account estimated run-rate synergies. Including the estimated run-rate synergies that Altice USA expects to realize in full within two years of closing the transaction and adjusting for the present value of anticipated tax benefits, the purchase price represents a multiple of projected 2022 Adjusted EBITDA of 7.4x.

Altice USA intends to finance the transaction with available liquidity. The transaction is subject to certain regulatory approvals and other customary closing conditions and is expected to be completed in the second quarter of 2021.

Moorgate Securities acted as financial advisor to Morris Broadband in connection with this transaction.

Bank Street Wins 2020 TMT M&A Award

STAMFORD, CT – Bank Street Group, a leading investment banking firm serving the technology, media and telecommunications sectors, was named a winner at the TMT M&A Awards 2020 as Communications Infrastructure & Services M&A Advisor in the Americas. With 10 qualifying deals during the judging period, Bank Street was ranked number one ahead of nine other global investment banks, highlighting the outstanding capabilities of our team and the strength of our M&A advisory practice. The award recognizes the critical role that Bank Street has established as a leading independent advisor in this sector.

"It is a great honor to have our firm recognized in the TMT M&A Awards," commented Richard Lukaj, Senior Managing Director of Bank Street. "We extend our thanks to our clients for entrusting their critical financial and strategic transactions to our firm for nearly two decades and to the TMT Finance panel of judges for recognizing the remarkable results that we have delivered over the past year. We exited 2020 with our transaction pipeline at record levels and we have high hopes for the New Year."

“We have built our practice around the Communications Infrastructure & Services sector with a team of professionals that distinguish themselves with deep domain expertise and unmatched transaction experience that has enabled us to consistently deliver outstanding results for our clients," continued James Henry, Senior Managing Director of Bank Street. "We remain at the forefront of transaction activity in the CIS sector and look forward to serving companies and financial sponsors in this vibrant ecosystem for many years to come.”

Bank Street provides insightful and objective advice to help our corporate and institutional clients achieve their financial and strategic goals. We are a private investment banking firm primarily serving growth companies in the communications, media and technology sectors with a comprehensive array of services, including Merger & Acquisition Advisory, Debt and Equity Capital Markets, and Restructuring Solutions. For further information, visit www.bankstreet.com.

Boston Omaha Corporation Announces Agreement to Acquire the Assets of Utah Broadband, LLC

OMAHA, Nebraska - Boston Omaha Corporation, through its wholly owned subsidiary FIF Utah LLC (“FIF Utah”), has entered into an agreement to acquire Utah Broadband, LLC (“UBB”), a family-owned broadband fiber and fixed wireless internet service provider. Founded in 2002, Utah Broadband provides high-speed internet services to its well over 10,000 customers throughout Salt Lake City, Park City, Ogden, Provo and surrounding communities.

The closing is subject to various conditions, including, among other things, further due diligence, regulatory approvals, third party consents and other normal and customary conditions to closing. The closing is anticipated to be completed, subject to the closing conditions, within the next 30 days.

Steve McGhie will continue as CEO while retaining a 20% initial ownership stake in the newly formed entity as he continues to guide Utah Broadband’s next phase of growth. The remaining 80% initial ownership stake will be owned by a wholly owned subsidiary of Boston Omaha, which intends to make significant additional capital investments to fund the company’s planned fiber-to-the-home expansion. Under the Agreement, FIF Utah will acquire substantially all of the assets of UBB and assume only certain UBB liabilities. The purchase price consists of $21,600,000 in cash to be paid at closing, subject to certain working capital and other adjustments, and the issuance of 20% of the common membership interests of FIF Utah, valued at $5,400,000, to Mr. McGhie. A portion of the cash purchase price will be held in escrow to provide a source of indemnification for any breaches of the representations and warranties, covenants and other obligations of UBB, its members and Mr. McGhie under the Agreement.

About Boston Omaha Corporation

Boston Omaha Corporation is a public holding company with three majority owned businesses engaged in outdoor advertising, surety insurance and broadband telecommunications services. The Company also maintains minority investments in a bank, a national residential homebuilder and commercial real estate services businesses.

M/C Partners Acquires Bel Air Internet, Expanding the AerioConnect Platform in Southern California

LOS ANGELES, CA. – M/C Partners, a Boston-based Communications and Technology Services focused private equity firm, announced the acquisition of Bel Air Internet, LLC (“BAI”), one of the largest privately owned Internet Service Providers to multi-family and commercial clients in Southern California providing services to over 800 buildings in the greater Los Angeles market. BAI will be combined with the recent acquisitions of AerioConnect and Metro Fiber, creating one of the largest ISP’s in the region.

 “The addition of Bel Air and its valued customers and employees to our existing operations is an exciting part of the growth strategy we have embarked upon. The expansion of our team and customer reach in the greater Los Angeles market enhances our ability to deliver high quality and feature rich services throughout the region and beyond. We are very excited to continue to deliver excellence in the services we provide while continuing to expand the geography we serve.” said Brady Adams, CEO of the newly formed, combined entity.  

Terry Koosed, founder of BAI added, “I am excited for the next chapter of BAI and the additional opportunities this acquisition provides for our employees and our customers. Supported by M/C Partners and the wonderful employees at BAI, our customers will continue to receive the premium service they have come to expect.”

“We are extremely excited to accelerate our business plan of establishing the preeminent residential and commercial broadband provider for MDUs in the region through the acquisition of BAI. The BAI team has a long history of providing highly advanced, quality services to some of the most prestigious properties in the market. BAI’s focus on customer service and network density complements our previous acquisitions and aligns us for continued success,” said Ryan Carr, Partner at M/C Partners.

About Bel Air Internet

Based in Los Angeles, BAI is a leading provider of Internet, Voice and Video services for over a decade to the greater Los Angeles market. Bel Air serves over 800 multi-family and commercial buildings throughout the Los Angeles market. Please visit us at www.belairinternet.com

About AerioConnect

Aerio is a leading provider of Internet, Voice and Video services to the greater Los Angeles market. Aerio serves over 500 multi-family and commercial buildings offering customers up to gigabit speed broadband connections throughout its footprint. Please visit us at www.aerioconnect.com

About M/C Partners

Based in Boston, M/C Partners is a private equity firm focused on small and mid-sized businesses in the communications and technology services sectors. For more than three decades M/C Partners has invested $2.2 billion of capital in over 130 companies, leveraging its deep industry expertise to understand long-term secular trends and identify growth opportunities. The firm is currently investing its eighth fund, partnering with promising companies and empowering strong leaders to accelerate growth, optimize operations, and build long-term value. For more information, visit www.mcpartners.com

AerioConnect Acquires Metro Fiber

LOS ANGELES - AerioConnect, LLC (“Aerio”), backed by M/C Partners, announces the acquisition of Metro Fiber LLC, a Los Angeles (LA) based Internet Service Provider (ISP) to multi-family residential customers in the greater LA market. Metro Fiber has provided Internet, Voice and Video to customers in the market for over ten years and focuses on providing exceptional broadband to HOA communities. The acquisition closed subsequent to M/C Partners acquisition of Aerio on September 30, 2020. Metro Fiber’s customers will continue to enjoy services provided by Aerio.

“In our continued effort to execute our business plan, we are extremely excited to acquire Metro Fiber with its valued customers and partnerships that will add to our depth in the Los Angeles market,” said Ryan Carr, Partner at M/C Partners.

“We are excited for the opportunity to serve our newly acquired Metro Fiber customers and their existing business partnerships. With the support of M/C Partners, the management team at Aerio will continue to focus on continuous evolution of our products and services to grow value for our trusted partners,” said Brady Adams, CEO of Aerio.

With the equity infusion from M/C Partners in September, Aerio will continue to expand their current geographic presence through existing partnerships, as well as acquisitions.

About Metro Fiber

Based in Los Angeles, Metro Fiber has provided Internet, Voice and Video for over a decade throughout the metro LA market.

About AerioConnect

Based in Los Angeles, Aerio is a leading provider of Internet, Voice and Video services to the greater Los Angeles market. Aerio serves over 400 multi-family and commercial buildings throughout the LA area. For more information visit https://www.aerioconnect.com/

About M/C Partners

Based in Boston, M/C Partners is a private equity firm focused on small and mid-sized businesses in the communications and technology services sectors. For more than four decades M/C Partners has invested $2.3B of capital in over 140 companies, leveraging its deep industry expertise to understand long-term secular trends and identify growth opportunities. The firm is currently investing its eighth fund, partnering with promising companies and empowering strong leaders to accelerate growth, optimize operations, and build long-term value. For more information visit http://mcpartners.com/

M/C Completes Acquisition of AerioConnect, Establishing a Platform in Residential and Commercial Broadband

Los Angeles, CA (BUSINESS WIRE) M/C Partners, a Boston-based Communications and IT Services focused private equity firm, announced the acquisition of AerioConnect, LLC. (“Aerio”), a leading Internet Service Provider to multi-family and commercial clients in the greater Los Angeles market. Aerio currently serves over 9,000 subscribers across 400 buildings in the greater Los Angeles market. The acquisition closed on September 30, 2020. Brady Adams, former CEO of Optic Access, has been appointed Chief Executive Officer and will be responsible for driving the company’s growth initiatives going forward.

“We are excited for the opportunity to partner with Aerio and build upon the strong foundation in residential and commercial broadband,” said Ryan Carr, Vice President at M/C Partners, “our plan is to reinforce our commitments with our best in class, trusted partners by investing in our products and services while expanding our reach throughout the region.”  

“I greatly appreciate the opportunity to join the Aerio team to grow Aerio’s customer base within the Los Angeles market, as well as, expand both services we provide and geography we serve” said Brady Adams. 

Brian Clark, Managing Partner of M/C Partners added, “Residential and commercial broadband services is a core focus of M/C and one we have extensive experience with from previous investments including Baja Broadband, Zayo and Lightower Networks.  We see Aerio as an attractive investment in a core area of focus with exceptional growth potential.”

With additional capital from M/C, Aerio will look to expand their current geographic presence through existing partnerships, as well as, acquisitions.

About AerioConnect

Based in Los Angeles, Aerio is a leading provider of Internet, Voice and Video services to the greater Los Angeles market. Aerio serves over 400 multi-family and commercial buildings throughout the Los Angeles market.

About M/C Partners

Based in Boston, M/C Partners is a private equity firm focused on small and mid-sized businesses in the communications and technology services sectors. For more than three decades M/C Partners has invested $2.2 billion of capital in over 130 companies, leveraging its deep industry expertise to understand long-term secular trends and identify growth opportunities. The firm is currently investing its eighth fund, partnering with promising companies and empowering strong leaders to accelerate growth, optimize operations, and build long-term value. For more information, visit www.mcpartners.com.

For more information on Aerio, visit us at https://www.aerioconnect.com/.

Nelnet Partners with SDC Capital Partners to Propel ALLO's Growth

LINCOLN, Neb., Oct. 2, 2020 -- Nelnet (NYSE: NNI) announced today it has entered into agreements to partner with SDC Capital Partners, LLC ("SDC") in which funds managed by SDC will make a $197 million equity investment in ALLO Communications, LLC ("ALLO") for an approximately 48% ownership stake in ALLO. The collaboration will provide ALLO with capital to continue expanding its all-fiber-optic network and superior service offerings into additional communities in the Midwest. The investment by SDC is expected to close in October 2020, subject to certain closing conditions.

"Exceptional communications solutions for business, government, and residential customers have become even more important during the pandemic," said Brad Moline, President of ALLO. "Communities across the Midwest are clamoring for better connectivity. We are excited to continue to deliver to all of our customers the exceptional local service that ALLO has provided for more than 15 years. With SDC, Nelnet, and our proven team of 500+ associates, we can transform how even more communities work, learn, and play."

Since 2004, ALLO has been overbuilding communities with modern fiber networks, creating GIG communities. As of June 30, 2020, ALLO's team served more than 53,000 residential subscribers and thousands of businesses as well as governmental entities across 12 communities.

"ALLO has established itself as a leading provider of fiber-to-the-premise services in Nebraska and Colorado and we are thrilled to support its growth alongside Nelnet," said Clinton Karcher, Principal at SDC. "We are firm believers that serving customers with high-quality, state-of-the-art network infrastructure and white glove customer service will result in long-term success, and ALLO embodies both of these characteristics."

"We are excited to partner with SDC to accelerate ALLO's growth," said Terry Heimes, Chief Operating Officer of Nelnet. "SDC's investment will provide the necessary capital to build out fiber networks primarily in Nebraska and Colorado and help communities and businesses meet the increasing demand for high-speed, reliable broadband with the best and latest technologies. SDC's deep sector experience and relationship network make it the ideal long-term partner for ALLO. Over the last five years, we have seen firsthand the value ALLO's technology and service bring to a community. We look forward to supporting their long-term success alongside SDC."   

The proceeds to be obtained by ALLO from the transaction, together with new third-party debt financing expected to be obtained by ALLO, will be used to fund ALLO's expansion and partially redeem outstanding senior preferred interests held by Nelnet. Additional information about Nelnet's agreements with SDC and ALLO will be provided in a Current Report on Form 8-K to be filed by Nelnet with the Securities and Exchange Commission on the date of this press release.

Nelnet acquired 92.5 percent of the outstanding equity and membership interests of ALLO on December 31, 2015. Since that transaction, Nelnet has invested significant additional capital in ALLO to build networks in Lincoln, Hastings, Imperial, and Norfolk, Nebraska and Fort Morgan and Breckenridge, Colorado.

Goldman Sachs & Co. LLC acted as financial advisor to Nelnet in connection with the transaction.

About SDC Capital Partners 
SDC Capital Partners, LLC is a global digital infrastructure investment firm. SDC invests in data centers, fiber networks, wireless infrastructure and associated businesses, with a focus on opportunities to leverage its deep operational expertise in partnership with exceptional teams to create value. For more information, please visit www.sdccapitalpartners.com.

About ALLO Founded in Imperial, Neb. in 2003, ALLO, a Nelnet company (NYSE: NNI), specializes in providing world-class communications services by creating gigabit communities. In 2004, ALLO began building its first fiber communities, and today provides ubiquitous fiber networks in 12 communities supported by more than 500 associates. ALLO provides broadband, telephone, and video solutions to businesses, residents, and governmental entities over fiber networks. ALLO currently has operations in Lincoln, Hastings, North Platte, Ogallala, Imperial, Bridgeport, Scottsbluff, Gering, Alliance, and Norfolk, Neb., and Fort Morgan, and Breckenridge Colo. For more information, visit AlloCommunications.com.

About Nelnet Nelnet (NYSE: NNI) is a diversified and innovative company focused on offering educational services, technology solutions, telecommunications, and asset management. Nelnet helps students and families plan and pay for their education and makes the administrative processes for schools more efficient with student loan servicing, tuition payment processing, and school administration software. Through its subsidiary, ALLO Communications, Nelnet offers fiber optic services directly to homes and businesses for ultra-fast internet and superior telephone and television services. The company also makes investments in real estate and early-stage and emerging growth companies. For more information, visit NelnetInc.com.