August 5, 2021 –
Since 1905 The New Knoxville Telephone Company has provided telephone service to New Knoxville and the surrounding areas. In 1997 the company expanded to service areas outside of New Knoxville. As the landscape of broadband services continues to change, the company has determined that aligning with a strategic partner will be in the best interest of our shareholders, customers and employees.
On July 30th the New Knoxville Telephone entered into a merger agreement with Schurz Communications Inc. This was not a quick and easy decision; however, for the longevity of the NKTelco brand and ongoing growth in our industry, it was determined this was the correct path forward. After Shareholder and regulatory approval, the transition will be seamless.
Schurz Communications was founded in 1872 and has a fifth generation family member as the active CEO. They believe in local business and strong community support just like NKTelco.
The day to day operations, the team of employees and local management here at NKTelco will remain the same. Our commitment to local community involvement will only grow.
Below is the press release that Schurz released on 8-4-2021.
Schurz Communications Announces Strategic Investment in Ohio-Based Fiber Provider NKTelco
New partnership positions best-in-class provider for next phase of growth
Mishawaka, Indiana and New Knoxville, Ohio (August 4, 2021) – Schurz Communications, Inc. (“Schurz”) announced today that it has entered into a definitive agreement to acquire Ohio based fiber provider, The New Knoxville Telephone Company (“NKTelco” or the “Company”). Schurz is a privately held communications company formed in 1872 that owns several other regional broadband operations and has a variety of cloud, digital, and advertising holdings comprising its communications portfolio. The Company is the sixth broadband business to join the Schurz portfolio.
“Schurz remains dedicated to connecting communities through access to information and empowering engagement, and we are proud to bring NKTelco into our portfolio,” said Todd Schurz, President and Chief Executive Officer at Schurz. “We have deep experience with broadband businesses and look forward to supporting NKTelco’s growth and expansion in Ohio. The Company aligns with our ongoing mission of uniting people through communications services.”
NKTelco is a locally-owned and operated fiber provider that has been in business since 1905. NKTelco currently offers data, voice and video services to residential and business customers in communities located throughout West Central Ohio. The Company’s current management team will continue to lead the business, which will continue to be managed locally in New Knoxville, OH and the Company will operate under the NKTelco brand.
“Schurz has a long history of supporting broadband companies and we are fortunate to be part of its family of businesses,” said Preston Meyer, General Manager of NKTelco. ”With this support, NKTelco will be able to accelerate plans of expanding its regional fiber network. In addition, we plan to announce Gigabit speeds and more cloud based offerings while continuing to deliver our superior customer service. We appreciate the expanded opportunities that being part of the Schurz family brings for our employees. Ultimately our partnership supports our investment in our local communities and increases our ability to pursue growth and expansion opportunities.
”As part of the transaction, Schurz will become owners of NKTelco’s 4.5% investment in Com Net, Inc. (“CNI”), an Ohio-based communications company, which will enable greater connectivity throughout the state.
“NKTelco is an excellent fit for our broadband portfolio that will help us support the communities in which they serve today and will serve in the future,” said Brian Lynch, Senior Vice President of the Schurz Broadband Division. “Their management team and employees have been and are exceptionally committed to providing the best communication services possible with the personal attention that every customer deserves.” Financial terms of the transaction were not disclosed. The transaction is subject to regulatory approval and is expected to close in Q4 2021.
Stifel served as financial advisor and FGKS Law served as legal advisor to NKTelco. Barnes & Thornburg served as legal advisor to Schurz.
Schurz is a family owned corporation that has been helping businesses, communities and individuals make meaningful connections for five generations. The Schurz legacy began in newspaper publishing and today, the company remains committed to making information more accessible through the platforms and technology of the digital age. Schurz Communications’ recent investments include regional broadband companies, global data center solutions providers and digital media and marketing firms. The company’s portfolio also includes a variety of minority investments. For more information, visit: www.schurz.com.
NKTelco is a locally-owned and operated fiber provider that has been in business since 1905 and currently offers data, voice and video services to residential and business customers in communities in West Central Ohio. NKTelco has a long history of expanding its fiber network in order to provide the best service possible to its customers. Currently, NKTelco serves the New Knoxville, New Bremen, Minster, Fort Loramie, Botkins, Anna, Maria Stein, Chickasaw, Osgood, Russia, Jackson Center, Sidney, Piqua and Versailles communities. For more information, visit: https://www.nktelco.com/.