13 Nov Journal to sell Norlight Telecommunications
Milwaukee, Wis. – Seven months after Journal Communications announced plans to spin off Norlight Telecommunications to its shareholders, the company has instead decided to sell Norlight to the Indiana-based Q-Comm Corp. for $185 million.
Q-Comm and Journal Communications have signed a definitive agreement in which Q-Comm will acquire 100 percent of the stock of Norlight, subject to federal and state regulatory approvals. Net proceeds, after taxes and transaction expenses, are expected to be approximately $125 million to $130 million.
The sale is expected to take approximately four to six months to complete, and Norlight will be treated as discontinued operations for Journal Communications beginning in the fourth quarter of 2006.
Steven J. Smith, chairman and chief executive officer of Journal Communications, indicated the change in plans came after the company was presented with an opportunity to maximize value for its shareholders, and partner Norlight with a similar telecommunications company. He said the sale will allow Journal Communications to focus on its local media businesses and pay down debt.
Norlight, headquartered in Brookfield, Wis., is a facilities-based communications company known for its “Guardians of Data” brand. The company has regional sales offices in Green Bay and Madison, Chicago, the Twin Cities, Indianapolis, and Grand Rapids, Lansing, and Plymouth, Mich.
Al Cinelli, chairman of the board of Q-Comm Corp., said the Norlight acquisition will enable Q-Comm to expand its network and increase services. Q-Comm is a facilities-based communications company that operates through wholly-owned subsidiaries and provides services to nearly 30,000 residential and business customers in the Midwest. Its operating subsidiaries are located in Evansville, Ind. and Overland Park, Kan.
“There are significant compatibilities between the operations and services provided by the respective organizations, and our corporate cultures mesh well together,” Cinelli said in a statement.
• Norlight will offer VoIP in Madison, Green Bay
• Norlight introduces new e-mail security service
• Journal Communications to spin off Norlight
• Norlight adds Cisco-based IP systems in Wisconsin