Situation
OneSource Communications (“OneSource”) was started in 1998 by Tri-County Electric Co-op Inc. (“TCEC”) to provide broadband internet, telephone and video services to residential and business customers and its members in the Dallas/Ft. Worth metroplex. OneSource is a CLEC telecommunications service provider operating independently of TCEC. Following a strategic review, TCEC’s board of directors decided to explore the potential sale of OneSource to allow new ownership to continue and expand upon recently implemented strategic initiatives, including the growth capital needed to continue to provide superior products and service, while allowing TCEC to focus on its core competency as a provider of electricity.
Approach
CCCA was able to position OneSource as a significant platform acquisition opportunity given its strong presence in a highly desirable market. TCEC insisted interested parties demonstrate significant operating expertise and a history of being good operating partners, to preserve OneSource’s legacy and core operating values. Highlighting the growth opportunities and OneSource’s superior level of customer service, were key elements in communicating and marketing the OneSource story to a select group of both financial and strategic acquirers.
“CCCA managed an efficient process that successfully achieved, and even exceeded, our three main objectives for a sale: to find the right strategic partner for OneSource, to allow a smooth transition from TCEC ownership, and to realize a premium valuation.”
Darryl Schriver
CEO of TCEC
Outcome
Multiple parties submitted offers that allowed CCCA to create a true competitive “auction environment”. Ultimately, TCEC chose to pursue a transaction with Ubiquity Partners to carry forward the vison and mission on which OneSource was originally founded. The process resulted in a valuation significantly exceeding TCEC’s initial expectations while providing OneSource the telecommunication operational expertise and growth capital required in the current environment. This was all accomplished in the midst of the COVID-19 pandemic.
