Alaska Communications Acquires 51% Stake Of TekMate

(RTTNews) - Alaska Communications (ALSK) said Monday it has purchased 51 percent of TekMate, an managed information technology services firms, expanding on its 2010 acquisition of 49 percent interest in TekMate.

The deal means Alaska Communications will continue to expand its portfolio of managed network and IT solutions for its business customers in addition to its existing broadband product offerings.

TekMate's 60 employees will join Alaska Communications' managed services group, resulting in one of the largest managed services organizations in Alaska.

TekMate generated $6.8 million revenue for the twelve months ended December 2013. Alaska Communications expects to incur certain integration costs in 2014 associated with the deal, which will offset TekMate financial performance. The acquisition, therefore, is not expected to materially increase Alaska Communications' EBITDA or free cash flow in 2014.