By: E&P Staff Journal Communications has sold Norlight Telecommunications to Q-Comm Corp., for $185 million.
The deal is expected to close in four to six months. Net proceeds, after taxes and transaction expenses, are expected to be $125 to $130 million.
Q-Comm is a communications company that provides services to 30,000 residents and business customers in the Midwest.
This spring executives with Journal Communications said they originally wanted to spin-off Norlight.
?We recently were presented with an opportunity to maximize value for our shareholders, as well as to partner Norlight with a vibrant telecommunications company,? said Steven J. Smith, chairman and CEO of Journal Communications, in a statement.
?The sale of Norlight improves Journal?s flexibility and allows us to focus on our diversified local media businesses. After immediately using proceeds to pay down debt, we will evaluate various alternatives for enhancing long-term shareholder value.?
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