IdeaTek Telcom gets cash infusion from Oak Hill Capital and Pamlico Capital to enhance fiber reach

IdeaTek Telcom has secured a new investment from Oak Hill Capital and Pamlico Capital to expand its fiber internet services across Kansas. 

TPG Peppertree, an existing IdeaTek investor, will sell its current stake to Oak Hill and Pamlico as part of the transaction, while making a new investment alongside the two firms from its latest fund.

The Bank Street Group served as exclusive financial advisor and Stinson LLP served as legal counsel to IdeaTek Telcom in connection with this transaction. Houlihan Lokey served as exclusive financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Alston & Bird served as legal counsel to Oak Hill and Pamlico.

"This investment from Oak Hill and Pamlico is a testament to the strength of our vision and the incredible potential of our local communities. We are committed to building digital infrastructure that empowers individuals, businesses, and communities to thrive in the 21st century," said Jerrod Reimer, CEO of IdeaTek.

All about expansion

As part of IdeaTek's growth strategy, the service provider plans to expand its fiber network into new towns and underserved areas across Kansas, beginning with Emporia, Baxter Springs, Liberal, Leoti, Tribune, Garden City, and Wichita, with anticipated extension to additional Kansas communities expected to be announced.

These new expansion plans follow the builds the company conducted throughout 2024. In 2024, IdeaTek launched its lit fiber broadband service in several communities, including Mulvane, Derby, Hutchinson, Newton, Augusta, Dodge City, and Garden City.

In addition to its builds, IdeaTek has also been an active participant in consolidating the fiber broadband industry, having purchased Rise Broadband's Kansas operations in the fall of 2024. This move expands IdeaTek’s customer base in Marion, Harvey, Butler and McPherson counties. 

But providing connectivity is only one part of IdeaTek’s goals.

IdeaTek stated that the new investment will enhance connectivity for residents and businesses, and is expected to generate significant economic development in Kansas through job creation and stimulation of local economies, reaffirming the company’s vision for "Internet Freedom for all."

A new combination

With scale being a key driver, IdeaTek will gain a further leg up through its combination with fellow fiber broadband provider Socket Telecom.

Oak Hill and Pamlico also announced a similar strategic investment in Socket Telecom. This Missouri-based fiber internet service provider will be combined with IdeaTek to create a scaled Midwest fiber internet service provider. 

Socket, which began its life as a dial-up and later DSL provider, has been providing fiber-based broadband service since 2011 and now serves residential fiber homes in over 21 counties, adding fiber internet access to more than 90,000 homes with speeds of up to 2.5 Gbps. Socket also offers more advanced data services to businesses, community institutions, and non-profit customers.

Veteran broadband executive Jim Gleason, who has had a long-standing history of success in partnership with both Oak Hill and Pamlico, including most recently as CEO of Vexus Fiber, has been named as Executive Chairman of the combined company.

Both Socket and IdeaTek will remain as distinct brands with local management, preserving their identities and the relationships they have built within their respective communities. The combined companies intend to utilize the capital from Oak Hill and Pamlico to expand across the Midwest, with a target of passing over 500,000 homes in the Midwest with their fiber networks by 2028.

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