HickoryTech To Buy CP Telecom

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May 5, 2009 (FinancialWire) -- HickoryTech Corp. (NASDAQ: HTCO) said it has reached an agreement to acquire Computer Pro, Inc., a privately held facilities-based telecom provider, for around $7 million.

Computer Pro serves Minneapolis, St. Paul and northern Minnesota. HickoryTech said it plans to fund the acquisition primarily with cash. The closing of the transaction is scheduled to occur in the third quarter 2009.

HickoryTech's CEO John Finke said that the acquisition fits the company's strategic priority to enhance its focus on the small and medium sized business customer, expands its business product portfolio, and develop its agent sales channel program.

CP Telecom provides voice, data and Internet services. According to HickoryTech, CP Telecom's 2008 unaudited revenue totaled around $10 million. The company's assets include long-term rights on a fiber network encompassing Minneapolis and St. Paul as well as soft switching technology.

Mankato, Minnesota-based HickoryTech offers integrated communication solutions to business and residential customers over a regional fiber network. The company has around 430 employees. The company's telecom sector has facilities-based operations in Minnesota and Iowa.

HickoryTech's Enventis sector provides IP-based voice, data and network solutions to businesses across a five-state region.

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