Iowa Telecommunications (IWA) to Acquire New Ulm Telecom Inc.'s Interests in En-Tel Communications

July 2, 2009 2:46 PM EDT

Iowa Telecommunications Services, Inc. (NYSE: IWA) has reached an agreement to acquire New Ulm Telecom Inc.'s ownership interests in En-Tel Communications, LLC, SHAL, LLC, and SHAL Networks, Inc. for $1.7 million, subject to specified customary adjustments. New Ulm Telecom is based in New Ulm, Minnesota.

SHAL owns and leases a 2,500-mile fiber-optic network throughout Minnesota that provides access to low cost, high quality transport facilities. En-Tel Communications is a CLEC based in Willmar, Minnesota, providing local voice, DSL and digital video services to customers in central Minnesota. Upon closing, Iowa Telecom will own all of the outstanding equity in the SHAL entities and substantially all of En-Tel Communications.

This is the fourth acquisition Iowa Telecom has announced in Minnesota over the past 18-months, following Bishop Communications, Sherburne Tele Systems and WH Comm. The sale is expected to close this fall. [SM]

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