New Ulm acquires Hutchinson for $78 million

By Lisa Kerner

Charlotte, N.C., Jan. 7 - New Ulm Telecom, Inc. completed its acquisition of Hutchinson Telephone Co. on Friday.

The merger had been slated to close on Dec. 31, but the companies agreed to revise the closing date, according to a form 8-K filing with the Securities and Exchange Commission.

New Ulm agreed on Aug. 3 to acquire Hutchinson for some $78 million. Under the reverse triangular merger agreement, a newly formed subsidiary of New Ulm merged into Hutchinson at closing, with Hutchinson continuing as a subsidiary of New Ulm.

Approximately $72 million of the $78 million will be distributed to Hutchinson shareholders. An additional $5.7 million was placed in an escrow account to indemnify New Ulm.

According to the SEC filing, the resulting combined company provides phone, video and internet services and has over 50,000 connections in a number of Minnesota and Iowa communities.

New Ulm, based in New Ulm, Minn., owns and operates phone, video and internet services.

Hutchinson is a Hutchinson, Minn.-based telephone company.

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