Minnesota-based telecommunications and broadband services provider Arvig Enterprises acquired certain fiber assets in Minnesota from Windstream Holdings Inc. in an all-cash transaction valued at $49.5 million.
Windstream also entered into a definitive agreement to sell additional fiber assets in Nebraska to Arvig for $11 million. The Nebraska transaction is expected to close in the first quarter of 2019.
Under the terms of the transaction, Windstream will establish a fiber network relationship with Arvig, which will allow Windstream to utilize the assets to continue to sell its products and services in Minnesota and Nebraska, according to a Dec. 18 news release.
"These transactions monetize latent dark fiber assets in Minnesota and Nebraska, lower capital requirements in each state and allow us to focus on our core network offerings with minimal change to our operations going forward," Windstream CFO Bob Gunderman said in a statement. "The structure also sets a roadmap for future fiber monetization across our footprint."
Charlesmead Advisors LLC acted as Arvig's exclusive financial adviser on the transaction.