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Segra now has more than 23,000 miles of fiber that connect more than 9,000 on-net location and six data centers throughout nine Southeastern and Mid-Atlantic states.
Fremont, CA: Segra, the fiber network consolidator, will be expanding its business as it plans to acquire/merge with North State Communication (NorthState), a company formed and is in service for over 100 years as a local telephone company. Northstate, which was initially started as a local telephone company, has presently broadened its service into many areas providing benefits to business customers. This announcement has come through a press release issued by Segra Inc.
NorthState is rather unusual among conventional independent telcos in that it provides some comparatively large metro markets, comprising the Piedmont Triad region of North Carolina. In contrast, Segra focuses on the Southeast and Mid-Atlantic. Segra is seemingly interested in the business service that NorthState primarily offers. The press release issued by Segra highlights the offerings of NorthState, such as customized cloud and IT solutions, data center collocation, cybersecurity, managed disaster recovery services, managed security, and unified communications. Segra was founded after European private equity firm EQT took over Spirit Communications and Lumos Networks in 2017.
According to a press release, Segra now has more than 23,000 miles of fiber that connect more than 9,000 on-net location and six data centers throughout nine Southeastern and Mid-Atlantic states.
The deal between Segra and NorthState
There is no mention of the NorthState's local exchange business in the press release, but it does note that the Lumos Networks name will still be used for the merged company's local exchange carrier business. Perhaps the name 'NorthState' will be retained for NorthState's local exchange operations. Segra will pay an average price of $80 per share for Class A and Class B of NorthState's stock, which represents a project value of approximately $240 millon.
EQT also has declared its plan to partner with a new investment firm, Digital Colony, to acquire fiber network operator Zayo Group Holdings. Zayo itself has obtained a number of other fiber network operators in last few years. The company is among the several entities – including Wave, Conterra, and others — that have kick-started the fiber network consolidation movement, which industry lender CoBank sees driven by broadband rivalry, rural coverage, and wireless densification.
Earlier this year, CoBank noted that fiber assessment had increased approximately 30% over the previous 12 months.
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