Vast Broadband said it has agreed to purchase NTS Communications, a regional broadband fiber company offering video, voice and data service to about 20,000 residential and business customers in Texas and Louisiana. Terms of the deal were not disclosed.
Vast, which provides video, voice and data services to about 55,000 homes and businesses in Minnesota and South Dakota, said under the agreement it will purchase NTS from its current private equity owner, Tower Three Partners. After the closing of the deal, Oak Hill Capital Partners and Pamlico Capital will lead a recapitalization of Vast to support the company's accelerated growth plans.
NTS operates a fiber network spanning more than 2,700 route miles passing more than 60,000 homes and businesses in Lubbock, Amarillo, Abilene, Midland and Wichita Falls, Texas and select markets in Louisiana.
"We are thrilled to acquire the attractive NTS fiber assets and support NTS's talented local management team to better serve these customers and communities," said Vast CEO Jim Gleason in a statement. "We are excited to launch our next stage of growth supported by long-term financial commitments from Oak Hill and Pamlico, and we look forward to investing in our network and service offerings across the combined footprint while continuing our focus on providing the highest quality service to our customers."
The Bank Street Group LLC served as NTS's exclusive financial advisor in connection with this transaction. SunTrust Robinson Humphrey, Inc. and TD Securities (USA) have committed to provide debt financing to support the transaction.