Unite Private Networks (UPN) has reportedly agreed to acquire Zito Media’s fiber-optic network in an attempt to bolster coverage for its customers in Nebraska, particularly in Omaha and Lincoln markets.
The financial terms of the transaction were not disclosed.
Under the deal, Zito Media will also transfer a few number of customer contracts to United Private Networks. These customers are currently being served by Zito’s fiber-optic network, which is 838 miles in length.
For UPN, the acquisition of fiber network adds coverage and capabilities in the Nebraska market.
“Zito serves a diverse mix of school, government, carrier and enterprise customers, similar to UPN. It’s a natural fit for us to bring these networks together to continue to help fuel our growth,” stated Kevin Anderson, CEO at UPN.
Zito’s fiber network currently serves rural communities in southeast Nebraska. UPN hopes to use the fiber-optic cables to widen its consumer base in Omaha and Lincoln markets.
“The Zito fiber network fits nicely with UPN’s existing fiber network in Nebraska; it’s pretty much hand and glove,” said Ron Reckrodt, COO at UPN. “The networks are already interconnected and we’ve partnered with Zito in the past to provide services to multi-site customers.”
Unite Private Networks says it has already begun preparing for integration and the service will not be interrupted for any existing customers.
Kansas City, MO-based UPN offers communications services to schools, governments, carriers, data centers, hospitals and enterprise business customers in 18 states, primarily in the Midwest. The firm is owned by Ridgemont Equity Partners, a Charlotte-based private equity firm.
“This network was originally built to link together cable TV markets located throughout southeast Nebraska,” said James Rigas, CEO at Zito Media. “Over the years, we’ve been able to leverage the network to serve a base of larger customers with fiber-based services.”
Zito Media will reportedly use the money earned from the sale to expand its cable TV service across the United States.
The transaction, however, needs regulatory approval and is likely to be closed by the 3rd quarter of 2012.
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Edited by Braden Becker