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GCI Strengthens Alaska’s Fiber Connectivity by Acquiring Quintillion

In a significant move to bolster its service offerings, GCI Holdings, LLC, a subsidiary of GCI Liberty, Inc., has entered into a definitive agreement for the acquisition of Quintillion, a key player in Alaska’s fiber infrastructure. This acquisition involves the purchase of all shares of Q Gateway Intermediate Holdings, LLC, known as Quintillion, which has been instrumental in disseminating fiber connectivity throughout the region. This partnership aims to merge over 1,800 miles of existing subsea and terrestrial fiber with GCI’s statewide network, designed to enhance communication capabilities for Alaskan residents.

Enhanced Infrastructure and Network Reliability

Alaska’s challenging geographical and climatic conditions necessitate a robust telecommunications framework. The integration of GCI and Quintillion promises to significantly improve service reliability, especially essential in remote areas where telecommunications play a vital role in daily life, healthcare, and emergency response. With a combined network design that focuses on routing diversity, risks of service outages will be minimized. This strategic merger is anticipated to create a self-healing network architecture that can automatically redirect traffic during disruptions, ensuring consistent connectivity for Alaskan communities, including those as remote as Kotzebue, located 26 miles above the Arctic Circle.

Billy Wailand, Senior Vice President of Corporate Development at GCI, highlighted that the unification combines the strengths of both companies, stating, "This combination is more than the sum of its parts... we're building a network that is stronger and more resilient to meet Alaska's unique challenges."

A Commitment to Operational Excellence

Following the merger, GCI aims to leverage its operational expertise to manage the unified network effectively. GCI's seasoned teams, who have managed fiber and other communication networks in some of the most isolated environments in North America, will oversee day-to-day operations. Centralizing network management under one umbrella will not only enhance performance but also streamline responsibility regarding service interruptions and repairs.

The acquisition has set a foundation for preventative maintenance and coordinated repairs, optimizing future capital investments across the entire network.

Funding for Expansion and Improved Access

Both companies have underscored their dedication to expanding broadband access in Alaska. Post-acquisition, GCI plans to continue and complete existing grant-funded projects initiated by Quintillion, skillfully pairing public funding with private investment. This alignment is crucial for high-capacity infrastructure provision, especially in economically challenging areas.

Additionally, this merger emphasizes maintaining robust communications infrastructure, critical not just for civilian needs but also for national defense and emergency services in a region known for its strategic importance. As articulated in the press release, the combined operational framework will significantly enhance communication reliability necessary for supporting mission-critical activities across Alaska.

Transaction Overview

The definitive agreement outlines that GCI will acquire 100% of Quintillion at an enterprise value of $310 million, adjusting for customary working capital. Furthermore, GCI has pledged reimbursement up to $50 million for qualifying capital expenditures related to the Nome–to–Homer Express project. Additional conditional payments may be made in the years following the deal based on performance metrics.

Conclusion

The acquisition of Quintillion marks a critical step towards building a future-proof telecommunications infrastructure in Alaska. With its extensive investment history, GCI is set to lead the charge in creating a more connected and resilient state. For communities in Alaska, this merger is not merely a corporate transaction; it represents a commitment to fostering equitable access to essential communication services and enhancing the overall quality of life across the state. To learn more about the ongoing initiatives and the impact of this merger on Alaskan communities, visit GCI’s official site at www.gci.com.