Alaska Communications sold to East Coast firm and investors for $343 million

July 24 Alaska Communications, one of the state’s largest Internet service providers, has been sold to an East Coast telecommunications company and an investment firm.

The sale was announced at the beginning of the year and ATN International Inc. said in a written statement and filings with the Securities and Exchange Commission on Thursday that the $343 million settlement is now complete. Through a holding company, ATN will own 52% of Alaska Communications. An investment company called Freedom 3 Investments IV will own 48% through another holding company.

“Our brand, company name and commitment to Alaska remain the same,” said Heather Cavanaugh, a spokeswoman for Alaska Communications. She said there are currently no plans to change prices.

The company was delisted from the Nasdaq stock exchange Thursday, with shareholders paying $3.40 per share as part of the deal.

Alaska Communications primarily sells Internet and telephone services to businesses, but is also the second largest provider of Internet services for the home. Alaska Communications said in filings with the Securities and Exchange Commission that it has “less than 25%” of the state’s market share. Its bigger competitor, GCI, was sold to a Colorado company in 2017.

As of March 31, Alaska Communications had 555 full-time employees, and just over half were represented by the IBEW.

State and federal regulators approved the sale earlier this month. In its filing with the Federal Communications Commission, ATN said it has previously provided Internet access to “insular and underserved markets in the United States and the Caribbean, and Bermuda.”

When approving the purchase on July 16, federal regulators said the sale “will likely benefit the public interest,” in part because ATN is a larger company and will give Alaska Communications greater access to money needed to operate its broadband network in Alaska. to expand.

The approval notice said regulators expect the company to provide broadband access to more than 6,000 currently unserved locations, mostly homes and businesses, in addition to a planned expansion under a federally funded program.

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Another planned project could provide high-speed wireless Internet to more than 60,000 locations in Anchorage, Fairbanks and Juneau, the FCC noted.

Alaska regulators approved the sale Monday, noting that “there is no indication that the transaction will face opposition.”

The approval notice stated that state regulators have “received several informal complaints” from customers about various issues, and that the Alaska Regulatory Commission has instructed regulatory staff “to oversee ACS going forward.”

Brittany Loper, a spokeswoman for the commission, said language is not uncommon and that the commission “will continue to monitor and deal with complaints as usual with the aid program.”