Segra’s $240 Million Acquisition of NorthState


Simpson Thacher represented Segra in the transaction.

Segra entered into a definitive agreement to acquire North State Telecommunications Corporation (“NorthState”), a fiber optic network, cloud and IT services and cybersecurity provider.

Segra will pay $80 in cash per share for both Class A and Class B of NorthState’s common stock, which, inclusive of indebtedness, represents an enterprise value of approximately $240 million. The transaction is anticipated to close in the second or third quarter of 2020 and is subject to customary regulatory approvals and other closing conditions.

Segra is one of the largest independent fiber bandwidth companies in the eastern U.S. It owns and operates an advanced fiber infrastructure network of more than 23,000 miles that connects more than 9,000 on-net locations and six data centers throughout nine Mid-Atlantic and Southeastern states. Segra provides Ethernet, MPLS, dark fiber, advanced data center services, IP and managed services, voice and cloud solutions, all backed by its industry-leading service and reliability. Customers include carriers, enterprises, governments and healthcare organizations.

The Simpson Thacher team included David Lieberman (Picture), Jim Cross, Justin Thekkekara, Collin Hunt and Braxton Pitts (M&A); Brian Steinhardt and Eli Isak (Credit); Jonathan Goldstein (Tax); David Rubinsky, Joo Hyun Lee and Arielle Trapp (ECEB); Krista McManus (Real Estate); Michael Isby (Environmental); and Lori Lesser and Genevieve Dorment (Intellectual Property).

Involved fees earner: Jim Cross – Simpson Thacher & Bartlett; Genevieve Dorment – Simpson Thacher & Bartlett; Jonathan Goldstein – Simpson Thacher & Bartlett; Collin Hunt – Simpson Thacher & Bartlett; Eli Isak – Simpson Thacher & Bartlett; Michael Isby – Simpson Thacher & Bartlett; Joo Hyun Lee – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; David Lieberman – Simpson Thacher & Bartlett; Krista McManus – Simpson Thacher & Bartlett; Braxton Pitts – Simpson Thacher & Bartlett; David Rubinsky – Simpson Thacher & Bartlett; Brian Steinhardt – Simpson Thacher & Bartlett; Justin Thekkekara – Simpson Thacher & Bartlett; Arielle Trapp – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Segra;