Alaska Communications paid Macquarie, GCM a $6.8 million break-up fee

After taking advantage of its right to solicit “superior proposals” from third-parties, Alaska Communications has backed out of its previous deal with Macquarie and GCM and managed to secure a higher price for itself. The newly formed entity, owned by ATN International and Freedom 3 Capital, has agreed to buy the company for $332 million.

In order to be able to continue with the new deal, which is expected to close in the second half of 2021, Alaska Communications paid Macquarie and GCM a $6.8 million break-up fee. Once finalized, Alaska Communications will become a consolidated, majority-owned subsidiary of ATN.

Under the terms of the new agreement, which is subject to the approval of Alaska Communications’ stockholders, regulatory approvals and other closing conditions, an affiliate of ATN will acquire all the outstanding shares of Alaska Communications common stock for $3.40 per share in cash.

According to Michael Prior, chairman and CEO of ATN, the purchase is an opportunity for ATN to “enter a new market with many similar characteristics to [its]existing operations in the U.S. and elsewhere.”

He continued: “Further, it aligns with our strategy to leverage the broad capabilities of our operating platform to enhance and augment leading providers of facilities-based communications services in distinctive markets. ATN has a long history of enabling its subsidiaries to gain and maintain strong market positions by investing in high quality infrastructure, the latest technologies and creative solutions to give customers a superior experience.”

Founded in 1998, Alaska Communications runs an undersea fiber-optic system to connect Alaska to the contiguous U.S. and provides broadband and managed IT services for its business and residential customers in Alaska. The transaction is expected to enhance its fiber network services and lead to enhanced and expanded network capabilities, said the company’s President and CEO Bill Bishop.