ONEONTA, Ala., April 11, 2006 -- Otelco Inc., a telephone services provider in rural Alabama and Missouri, announced today it will acquire privately owned Mid-Maine Communications Inc. of Bangor, Maine, for approximately $37.8 million in cash.
Otelco President and CEO Mike Weaver said the acquisiton of Mid-Maine, also a rural wireline telephone provider, will complement its existing operations. "More importantly, Mid-Maine has demonstrated strong financial performance and operational results, and their management team will continue to lead operations after the transaction closes. We also believe expansion opportunities exist in the New England area and that the Mid-Maine acquisition can be the catalyst for growth in this part of the country," he said.
Mid-Maine generated $22.1 million in revenue for 2005 and has spent $18 million in network improvements over the last five years. Otelco said the acquisition will increase its total access lines from 32,500 to over 51,000. In addition to operating its own tandem switch, Mid-Maine's network encompasses 188.5 miles of fiber and four OC48 systems, as well as a state-of-the-art network operations center, Otelco said.
For more information, visit: www.otelco.net