Great Plains Communications has just completed two acquisitions in the second half of 2021, but CEO Todd Foje revealed that the company is looking for a deal partner for 2022 as it continues its strategy of building and buying its way to an expanded fibre footprint.
The Nebraska-based operator has a history of closing deals in a year, acquiring Pinpoint Network Solutions in 2016, InterCarrier Networks in 2019 and Enhanced Telecommunications in 2020. Corporation (Great Plains itself was acquired by private equity firm Grain Management in 2018.) Foje told Fierce "It's a very busy pace, but we can run at that pace without sacrificing too much as it relates to organic growth. "
Last year was an exception, as Great Plains completed its acquisition of USA Communications in October before acquiring the 10.6-mile Wood River network in Nebraska from a construction company called Fiber Nebraska. The latter deal closed on New Year's Eve, and Foje said that services on the newly completed GPON network are expected to be available to consumers starting this spring.
The financial terms of the Wood River deal were not disclosed, and Foje described it in an interview with Fierce as a "drawdown" to net holdings, which complemented the fibre assets it acquired from USA Communications. The deal is modest in terms of footfall - it will allow Great Plains to serve around 500 homes and 60 businesses. However, Foje says the network is the final piece of the puzzle Great Plains needs to complete its footprint in the region.
Great Plains' fibre network now spans more than 13,500 miles across 13 states.
It's more of a solution that fits perfectly and completes what we want to do in a specific part of our network in central Nebraska," Foje said, noting that the Wood River network is located in a rural town of 1,500 people, just a short drive from three of the larger communities in the region.
Great Plains is interested in closing another deal and completing another deal in 2022. It's part of our plan and part of our strategy. We don't know if the right thing will develop." More specifically, he said he was looking for deals to help expand its existing footprint and "extend our strong presence in the central US".
Both Great Plains and Grain Management are looking for acquisition opportunities. But Foje says the operator has also built a reputation as an "attractive buyer", meaning more potential deal partners are coming forward with offers.
"More than half of the acquisitions we do are acquisitions where we negotiate privately with the seller because they know we are willing to pay a fair price, they know our commitments are good, we will continue to deliver on our promises and commitments, and they know we have the knowledge, capability and financial resources to get the deal done," he explains.
The Wood River acquisition was one such deal, and Foje says Fiber Nebraska contacted Great Plains after completing its deal with American Communications because the seller understood how its fibre assets would fit into the operator's growing network. "So we were able to put this deal together in the last few months," Foje said.
In addition to the acquisition, Foje said Great Plains is also driving organic growth through 2022 with the construction of a series of "major projects" that will add "thousands" of newcomers. These include previously announced work in some markets in Nebraska and southeastern Indiana, with others yet to be announced.
