Ziply Fiber agrees to acquire La Grande-based Eastern Oregon Net Inc.
Published 7:00 am Thursday, June 9, 2022
- Zeitz
LA GRANDE — Kelly Mutch and Jeff Crews are proud of what they’ve accomplished as owners of Eastern Oregon Net Inc. But the La Grande businessmen knew after 26-plus years, it was time for a change.
Ziply Fiber announced plans Tuesday, June 7, to acquire EONI, one of Oregon’s longest serving and most respected internet service providers. Details of the deal between the two companies were not announced, but the acquisition is scheduled to close later this year, pending regulatory approvals.
“We’re very proud of what everyone at EONI has built and accomplished over the past 26 years,” said Crews, the vice president of EONI. “We’re even more excited about our future together with Ziply Fiber. Their commitment to service and to expanding access to fiber in the Northwest is unmatched and we’re proud to be joining in that effort.”
When the deal becomes final, Mutch, the president of EONI, said he will retire and Crews will remain and help lead the company under the Ziply banner.
“This was an opportunity for Jeff to continue to be part of the team with lots of additional resources and assistance from Ziply,” Mutch said. “Our service areas overlap a ton, if not entirely, so it made sense. It turned out to be the most compatible and cooperative situation for us that we could find.”
Mutch said when the announcement was made to staff June 7, the response was mostly positive.
“I think three-quarters of them were positive and the others had questions,” he said. “What we’ve told them is hang around, give it some time and you’ll see things are going to be good.”
Mutch and Crews started EONI in 1996. The company serves approximately 3,000 customers in Baker, Union and Wallowa counties and employs 15 people, including the two owners.
Mutch said EONI staff will have the opportunity to remain on with Ziply.
“It was important to us that the employees had an opportunity as well,” he said.
Both Crews and Mutch said keeping up with all of the advancements in broadband and mining federal programs for available funding is challenging for a small, rural company.
“Realistically, I can’t get my head around the amount of money the federal government is putting out to close the digital divide on rural broadband,” Crews said. “It’s very hard to navigate those programs. We’ve gone down that road a ways before. You really have to have a couple of full-time people to navigate these federal programs.”
Ziply Fiber has its headquartersin Kirkland, Washington, and has major offices in Beaverton, Everett, Washington, and Hayden, Idaho. The La Grande office is on Adams Avenue, just a block from EONI.
“Ziply Fiber is a Northwest company that’s here to simplify and elevate the connected lives of the people in the communities where we live and work. We believe that simple, easy access to fast and reliable internet is fundamentally important for families and businesses,” said Harold Zeitz, chief executive officer of Ziply Fiber. “So, when we looked around the Northwest and saw what Jeff and Kelly had created, it was no surprise to us to learn that they also believe in ‘The Internet Done Right.’ Our values were aligned years before we chose to make our joining forces a reality.”
Mutch said it was that aligned vision between the two companies that made it easier when the idea of the purchase was first broached.
“The timing’s good, the situation is good and the outcome for employees is good,” he said. “We know there are customers who’ve had a less than ideal relationship with Ziply and that’s why they are our customers and (Ziply knows) that too. We both agree that this is an opportunity to make both of us better.”
Ziply Fiber has been busy with fiber construction projects in more than 80 towns across the Northwest, including communities in Union and Wallowa counties, since it began its aggressive fiber expansion efforts in the summer of 2020.
“Ziply’s whole thing is build fiber and super-fast broadband at an affordable level to as many customers as they could, and the same for us,” Mutch said. “There’s a lot of money out there for building broadband available, and for us to take advantage of that would have been a bit more difficult. The challenges were really steep for a very small company, but by going with them, we could continue to do that and increase the resources available to us to be a part of that when it happens.”
Crews said he is excited to see what the future holds with Ziply.
“While this transition is happening, the EONI team is still going to be led by me and I’m still here to make sure this flies right,” he said. “I’m not moving, I’m not going anywhere.”
When Mutch’s time with the company ends, he said, it will come with “mixed emotions.”
“This is the best team, the best group of people we’ve ever had. This is really, truly a great team,” he said. “It’s difficult to leave, because they’re family. This is my daytime family. Never expected to be doing this as long as I have. I could not have imagined doing this for 26 years. I have given it my all but I need to be realistic and pragmatic about it and realize it’s someone else’s turn. I have really enjoyed doing this.”