ONEONTA, ALABAMA, April 4 /CNW/ - Otelco Inc. (NASDAQ: OTT) (TSX:
OTT.un), a wireline telecommunications services provider in Alabama,
Maine, Massachusetts, Missouri, New Hampshire and West Virginia, today
announced it has signed a definitive agreement to acquire Shoreham
Telephone Company, Inc. for approximately $4.5 million in cash, subject
to certain purchase price adjustments.
"The acquisition of Shoreham is a strategically important opportunity
for Otelco to continue the expansion of our footprint in New England,"
said Mike Weaver, President and Chief Executive Officer of Otelco.
"While Shoreham has similar roots to Otelco as a rural wireline
telephone provider, its existing network in Vermont provides an
excellent point from which our CLEC (OTT Communications) can begin
serving our fourth state. We are very excited about this transaction
and its impact as a catalyst for future growth."
Shoreham, located in Shoreham, Vermont, is a privately owned company
that has provided telecommunications solutions to residential and
business customers for nearly a century. The company offers a complete
set of voice, data and Internet services to its customers in middle
Vermont. For the year ended December 31, 2010, Shoreham generated
approximately $2.4 million in total revenue and had 4,975 access line
Otelco plans to finance the acquisition from cash on its balance sheet.
The acquisition is expected to close in 2011 following regulatory
Otelco Inc. provides wireline telecommunications services in Alabama,
Maine, Massachusetts, Missouri, New Hampshire and West Virginia. The Company's services include local and long
distance telephone, network access, transport, digital high-speed data
and dial-up internet access, cable television and other telephone
related services. With more than 99,000 voice and data access lines
which are collectively referred to as access line equivalents, Otelco
is among the top 25 largest local exchange carriers in the United
States based on number of access lines. Otelco operates ten incumbent
telephone companies serving rural markets, or rural local exchange
carriers. It also provides competitive retail and wholesale
communications services through several subsidiaries. For more
information, visit the Company's web site at www.OtelcoInc.com.
FORWARD LOOKING STATEMENTS
Statements in this press release that are not statements of historical
or current fact constitute forward looking statements. Such
forward-looking statements involve known and unknown risks,
uncertainties, and other unknown factors that could cause the timing of
the acquisition to differ from that expressed by such forward-looking
statements. In addition to statements which explicitly describe such
risks and uncertainties, readers are urged to consider statements
labeled with the terms "believes", "belief," "expects," 'intends,"
"anticipates," "plans," or similar terms to be uncertain and
forward looking. The forward-looking statements contained herein are
also subject generally to other risks and uncertainties that are
described from time to time in the Company's filings with the
Securities and Exchange Commission.
SOURCE Otelco Inc.
For further information:
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