Under the terms of the agreement, Nelnet will pay $46.25m for 92.5% of the outstanding equity and membership interests of Allo. The remaining 7.5% of the equity and membership interests will be owned by ALLO management, who will also have the opportunity to earn additional equity based on the performance of the company.
The transaction is expected to close in the fourth quarter of 2015, subject to normal regulatory approval and closing conditions.
Founded in 2003, Allo offers pure fiber optic service to homes and businesses for fast broadband, internet, television, local telephone, and long distance services. The company currently provides gigabit fiber to homes and businesses in Scottsbluff, Gering, Bridgeport, North Platte, Ogallala, and Alliance.
For the year ended December 31, 2014, it had revenue of $12.2m, an increase of 30 percent from the prior year.
Following the acquisition, Allo will become a subsidiary of Nelnet and retain its brand identity. Brad Moline, President, and Jeff Kuenne, Executive Vice President for Network Operations, will continue to lead the company.