By Will Feuer
Shenandoah Telecommunications, a broadband provider based in Edinburg, Virginia, has announced its acquisition of Horizon Telcom, an Ohio-based commercial fiber provider, for a total of $385 million. The deal, which consists of both cash and stock, aims to accelerate the growth of Shenandoah Telecommunications' Glo Fiber business.
Stock Soars on the News
Following the announcement, shares of Shenandoah Telecommunications experienced a significant surge, rising by 7% to reach $23.88 in midday trading. This boost adds to an already impressive 50% increase in the company's stock value since the beginning of the year. Moreover, Shenandoah Telecommunications achieved a fresh 52-week high just last Wednesday.
Horizon Telcom: A Valuable Addition
Horizon Telcom brings tremendous value to Shenandoah Telecommunications with its established presence in Ohio and adjacent states. Currently, about 64% of Horizon's revenue comes from commercial customers, including wireless carriers and healthcare providers. Furthermore, the company has been making substantial investments in its fiber-to-the-home network, positioning it for continued growth in the future.
Christopher French, Chief Executive of Shenandoah Telecommunications, expressed enthusiasm for the acquisition, emphasizing its potential to drive the company's growth forward. With Shenandoah Telecommunications already focused on expanding its fiber services to rural customers, this deal will serve as a catalyst for further progress.
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