Business Combinations, Asset Acquisitions and Dispositions

12 Months Ended

Dec. 31, 2023

Business Combinations, Asset Acquisitions and Dispositions

2021 Transactions

Everstream OpCo-PropCo Transaction

On May 28, 2021, the Company completed its previously announced strategic transaction with Everstream Solutions LLC (“Everstream”). As part of the transaction, Uniti entered into two 20-year dark fiber indefeasible rights of use (“IRU”) lease agreements with Everstream on Uniti owned fiber. Concurrently, Uniti sold its Uniti Fiber Northeast operations and certain dark fiber IRU contracts acquired as part of the Windstream settlement to Everstream. Total cash consideration, including upfront IRU payments, was approximately $135 million. In addition to the upfront proceeds, Uniti will receive fees of approximately $3 million annually from Everstream over the initial 20-year term of the IRU lease agreements, subject to an annual escalator of 2%. During the quarter ended June 30, 2021, we recorded a gain of $28.1 million related to this transaction, which is included in gain on sale of operations in our Consolidated Statements of (Loss) Income.


(Thousands)
Assets and liabilities sold:
Assets:
Property, plant and equipment, net	$	44,685
Goodwill	17,794
Intangible assets, net	7,264
Right of use assets, net	19,841
Total assets	$	89,584

Liabilities:
Lease liabilities	$	18,779
Intangible liabilities, net	4,492
Finance lease obligations	32,343
Total liabilities	$	55,614

Cash consideration	$	62,113
Less: total assets and liabilities sold, net	(33,970)
Gain on sale of operations	$	28,143