April 30, 2022
VTX1 Companies (VTX1) confirmed the announcement today of their most recent acquisition, Bee Creek Communications Inc., headquartered in Fredericksburg, Texas. Bee Creek has been a leading internet service provider since 2001 for the Hill County area, serving approximately 3,400 subscribers. Bee Creek offers coverage in the counties of Kendall, Kerr, and Gillespie, with overflow into Blanco County. Services provided by Bee Creek include internet and VOIP telephone services to both residential and business customers.
Mike Kunz, President of Bee Creek asserted, “We had a great run with Bee Creek and it was time to pass the reigns. We are excited about the acquisition by VTX1, as they share the same values of excellent customer service, and community support, while continuing to grow and expand our network to offer faster and reliable speeds. VTX1 will offer a talented team of industry leaders and additional financial resources to continue to upgrade our broadband footprint and invest in fiber internet options.”
The acquisition of Bee Creek, the third in less than seven months and the fifth within the last five years for VTX1, proves that the company is willing to expand beyond their South Texas roots where the company began in 1952, and where it is still headquartered today. The expansion into the Hill Country area is a first for VTX1 and the service area will be in proximity to other recent acquisitions that provide VTX1 broadband services in the Northwestern portion of San Antonio, Seguin and its surrounding area, and the Georgetown area, thirty miles north of Austin. Subscriber growth with the Bee Creek acquisition accelerates VTX1’s total number of subscribers to over 40,000, still proving to be one of the largest independently owned broadband service providers in Texas. Thirty-two fixed wireless towers from the acquisition will also add to VTX1’s current inventory for a cumulative total of 368 fixed wireless towers. In addition, this acquisition pushes VTX1’s service territory to 50,348 square miles, which in comparison is the approximate size as the State of Alabama.
Dave Osborn, CEO of VTX1 acclaimed, “Acquiring Bee Creek Communications Inc. truly comprises the best of both worlds for VTX1 Companies. The Hill County is a vibrant and growing community, so it is a pleasure of ours to add this to our available options for service to our customers who choose to live in this area. We also share a common goal of providing broadband that can enhance the quality of life for residents anywhere they reside. At the same time, Bee Creek’s corporate values align with VTX1’s, so it makes for a perfect partnership.”
VTX1 was represented in the sale by Michael Mazer of W.G. Nielsen & Co., a leading investment banking firm headquartered in Denver, and the law firm of Naman, Howell, Smith, and Lee PLLC (Austin, TX). Bee Creek was represented by the law firm of Clark Hill PLC (San Antonio, TX).
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About VTX1 Companies
VTX1 Companies was established as a cooperative in 1952 with the purpose of providing telephone service to rural subscribers deemed unfeasible by larger companies. Headquartered in Raymondville, Texas, the company has grown to become a leading broadband service provider offering fiber and fixed wireless internet, along with telephone services to customers in South and Central Texas. VTX1 Companies’ service area covers approximately 50,248 square miles, and it is the second largest rural internet service provider in Texas.
About Bee Creek Communications Inc.
Bee Creek formed in 2001 with the knowledge that many were moving out of the city and into the Hill Country with access only to dial up internet. Bee Creek’s core goal was to provide a faster more reliable internet option. The company supports numerous organizations in the Hill Country and strives to be a good steward of the community and operate with integrity. While the focus on rural areas has remained the same, Bee Creek has grown to offer service in both rural and smaller communities serving both residential and businesses.
About W.G. Nielsen & Co.
W.G. Nielsen & Co. is a Denver-based investment banking firm that specializes in mergers and acquisitions (sell side and buy side advisory services) and structured and leveraged financing transactions. W.G. Nielsen & Co., an independently owned, FINRA investment banking firm, offers clients innovative financing solutions. W.G. Nielsen & Co. enables select mid-sized clients to achieve their goals through strategic alliances, industry experience, and proven methodologies. Since the firm's inception in 1996, W.G. Nielsen professionals have completed transactions valued in excess of $4 billion. For more information, please visit www.wgnielsen.com. For information on the above transaction, please contact Michael Mazer, 303-320-3777.