Oct 15 2020
SDC Capital Partners Closes Investment in Allo Communications
SDC Capital Partners, LLC ("SDC") announced today that funds managed by SDC have acquired a 48% interest in ALLO Communications, LLC ("ALLO") and established a partnership with Nelnet (NYSE: NNI) and ALLO management which retain 45% and 7% interests respectively.
SDC’s investment will provide ALLO with capital to continue expanding its all-fiber-optic network and superior service offerings into additional communities in the Midwest.
"Exceptional communications solutions for business, government, and residential customers have become even more important during the pandemic," said Brad Moline, President of ALLO. "Communities across the Midwest are clamoring for better connectivity. We are excited to continue to deliver to all of our customers the exceptional local service that ALLO has provided for more than 15 years. With SDC, Nelnet, and our proven team of 500+ associates, we can transform how even more communities work, learn, and play."
Since 2004, ALLO has been overbuilding communities with modern fiber networks capable of delivering gigabit download and upload speeds, for residential and business customers. As of June 30, 2020, ALLO's team served more than 53,000 residential subscribers and thousands of businesses as well as governmental entities across 12 communities.
"ALLO has established itself as a leading provider of fiber-to-the-premise services in Nebraska and Colorado and we are thrilled to support its growth alongside Nelnet," said Clinton Karcher, Principal at SDC. "We are firm believers that serving customers with high-quality, state-of-the-art network infrastructure and white glove customer service will result in long-term success, and ALLO embodies both of these characteristics."
"We are excited to partner with SDC to accelerate ALLO's growth," said Terry Heimes, Chief Operating Officer of Nelnet. "SDC's investment will provide the necessary capital to build out fiber networks and help communities and businesses meet the increasing demand for high-speed, reliable broadband with the best and latest technologies. SDC's deep sector experience and relationship network make it the ideal long-term partner for ALLO. Over the last five years, we have seen firsthand the value ALLO's technology and service bring to a community. We look forward to supporting their long-term success alongside SDC."
The proceeds to be obtained by ALLO from the transaction, together with new third-party debt financing, will be used to fund ALLO's expansion and partially redeem outstanding senior preferred interests held by Nelnet.
About ALLO
Founded in Imperial, Neb. in 2003, ALLO, a Nelnet company (NYSE: NNI), specializes in providing world-class communications services by creating gigabit communities. In 2004, ALLO began building its first fiber communities, and today provides ubiquitous fiber networks in 12 communities supported by more than 500 associates. ALLO provides broadband, telephone, and video solutions to businesses, residents, and governmental entities over fiber networks. ALLO currently has operations in Lincoln, Hastings, North Platte,Ogallala, Imperial, Bridgeport, Scottsbluff, Gering, Alliance, and Norfolk, Neb., and Fort Morgan, and Breckenridge Colo. For more information, visit AlloCommunications.com
About Nelnet
Nelnet (NYSE: NNI) is a diversified and innovative company focused on offering educational services, technology solutions, telecommunications, and asset management. Nelnet helps students and families plan and pay for their education and makes the administrative processes for schools more efficient with student loan servicing, tuition payment processing, and school administration software. Through its subsidiary, ALLO Communications, Nelnet offers fiber optic services directly to homes and businesses for ultra-fast internet and superior telephone and television services. The company also makes investments in real estate and early-stage and emerging growth companies. For more information, visit NelnetInc.com.
About SDC Capital Partners
SDC Capital Partners, LLC is a global digital infrastructure investment firm. SDC invests in data centers, fiber networks, wireless infrastructure and associated businesses, with a focus on opportunities to leverage its deep operational expertise in partnership with exceptional teams to create value. For more information, please visit
www.sdccapitalpartners.com.