FairPoint sells Fremont Telcom and Fretel Communications to Blackfoot

Announced: November 28, 2012

Target: FairPoint Communications Idaho operations, Fremont Telcom and Fretel Communications (“FairPoint Idaho”)

Buyer: Blackfoot Telecommunications Group (“Blackfoot”)

Price: $30 million in cash

Assets: FairPoint Idahos competitive and incumbent properties serve approximately 5,400 business and residential customers in eastern Idaho. On an annualized basis, the properties contribute approximately $8 million in revenue and approximately $5 million in EBITDA, with capital expenditures of approximately $1 million. FairPoint Idaho also owns a minority investment in Syringa Networks, LLC, a regional fiber transport business.

Valuation: Approximately 6.0x annualized EBITDA

Closed: January 31, 2013

Comments: Based in Missoula, Montana, Blackfoot is a cooperatively-owned telecommunications company that delivers voice, data, IT, and security solutions to more than 20,000 business and residential customers throughout Montana and Idaho. Blackfoot's fiber optic network covers 6,500 square-miles in western Montana. Eleven FairPoint Idaho employees will join Blackfoot at the transaction closing. The transaction follows other recent acquisitions by Blackfoot. In early 2012, Blackfoot purchased Modwest, a Missoula-based web-hosting company. Blackfoot recently announced the pending acquisition of Cutthroat Communications, a provider of wireless and fiber optic services. Source: FairPoint Communications and Blackfoot press releases

Charlesmead Advisors, LLC served as exclusive financial advisor to FairPoint Communications in this transaction.

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