Iowa Telecom to Buy Minnesota Company

Iowa Telecommunications Services Inc. said Thursday it has agreed to buy Bishop Communications Corp. for $43.9 million.

Annandale, Minn.-based Bishop is a privately held company that includes Lakedale Telephone Co., a provider of rural telephone service in central Minnesota.

Iowa Telecom CEO Alan Wells said the acquisition provides an opportunity for the Newton-based company to expand its rural telephone business.

"Bishop is much like Iowa Telecom in that it operates in attractive service territories with appealing demographics, and has a very solid reputation with its customers and within the communities it serves," he said.

As of Dec. 31, 2007, Bishop served 12,000 local exchange lines, 5,100 competitive local exchange lines, 4,300 data customers and 3,600 video customers.

Bishop generated revenues of $19.5 million for the fiscal year ending Sept. 30, 2007.

Following receipt of regulatory approvals, Bishop Communications will operate as a subsidiary of Iowa Telecom. The sale is expected to close in the second half of this year.

Iowa Telecom provides local telephone, long distance, Internet, broadband and network access services to business and residential customers in more than 450 communities. It employs more than 650 people in Iowa.