LINCOLN-BASED NELNET SELLS CONTROLLING STAKE IN ALLO TO PRIVATE EQUITY FIRM

LINCOLN- Nelnet on Friday said it sold a controlling stake in Allo Communications to a New York-based private equity firm.

The Lincoln-based financial company said in a news release that it sold a 48% stake in Allo to SDC Capital Partners, a firm that specializes in investing in companies that own fiber networks, data centers and related businesses, for $197 million. That puts Allo's value at around $400 million, which is about eight times what it was valued at in 2015 when Nelnet paid $46.5 million for a 92.5% stake.

The sale will give SDC a controlling stake in the company. After the close of the deal, which is expected by the end of this month, Nelnet will own 45% of Allo, and the company's managers will own 7%, according to a securities filing.

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