Unite Private Networks to buy Nebraska fiber network from Zito Media

Fiber-based network services provider Unite Private Networks (UPN) says it has agreed to acquire an 838-route-mile fiber-optic network in southeast Nebraska from Zito Media for an undisclosed sum. The transaction includes certain customer contracts.

“The Zito fiber network fits nicely with UPN’s existing fiber network in Nebraska; it’s pretty much hand and glove. The networks are already interconnected and we’ve partnered with Zito in the past to provide services to multi-site customers. The integration will be seamless and will have no impact on existing customer service,” said Ron Reckrodt, COO at UPN.

“The acquisition of the Zito network and customers allows UPN to continue to add coverage and capabilities in the Nebraska market. Zito serves a diverse mix of school, government, carrier, and enterprise customers, similar to UPN. It’s a natural fit for us to bring these networks together to continue to help fuel our growth,” added Kevin Anderson, UPN CEO.

For Zito, the transaction will enable the company to redeploy its resources. “This network was originally built to link together cable-TV markets located throughout southeast Nebraska. Over the years, we’ve been able to leverage the network to serve a base of larger customers with fiber-based services. This sale provides funding that we plan to redeploy to add additional cable TV markets and to expand our commercial business in other parts of the country,” explained James Rigas, CEO of Zito Media.

The transaction requires regulatory approval and other consents, but is expected to close during the third quarter of this year. RBC Capital Markets and SunTrust Robinson Humphrey are arranging debt financing for the deal.