Alaska Communications Systems to go private in $300 million deal

Two global investment companies plan to purchase Alaska Communications Systems Group in a $300 million deal, the Anchorage-based telecommunications company said Tuesday.

With the acquisition by investment firms Macquarie Capital and GCM Grosvenor, ACS will become privately held, ending its publicly traded structure, ACS said in a prepared statement.

ACS provides broadband internet, information technology services and landline home phone service. There will be no change of service to ACS' business and residential customers, said Heather Marron, an ACS spokeswoman.

Marron declined to say how many customers the company has.

ACS currently employs 576 people, Marron said. Marron said the new investors “recognize the value in our company and people” and “expect to retain operations and employees.”

The deal is expected to close next year, some time after June.

Regulators and ACS stockholders must approve the transaction at an upcoming special meeting that will be held as soon as possible, ACS said in the statement. ACS also intends to take advantage of a provision in the deal that allows it to shop for an even better offer from other parties, through Dec. 3.

Bill Bishop, chief executive of Alaska Communications, praised the deal with Macquarie and GCM, saying it enhances ACS’s financial standing and will allow the company to provide better service.

“We firmly believe this transaction will allow us to enhance our expanded fiber network services and drive long-term value for our customers in Alaska and the Lower 48," Bishop said.

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Australia-based Macquarie Capital has completed more than $200 billion in transactions across a wide range of industries, while Chicago-based GCM Grosvenor manages $57 billion in assets, including in real estate, infrastructure and other areas.

Macquarie and GCM want to invest in ACS, Marron said. ACS will also see savings by becoming a privately held company, she said.

“We spend $4-5 million or more per year on expenses related to being a publicly traded company,” Marron said. “That money will now be available for other uses including investing in our network and customers.”

The investment companies plan to acquire ACS shares at $3 apiece. That boosted ACS shares by more than 50% from Monday’s value.

In August, ACS reported a $2.4 million profit for three months in the spring. It estimated total 2020 revenue at about $235 million.