Three U.S. cable operators: RCN Telecom, Grande Communications, and Wave Broadband are set to merge in a private equity-backed deal to create the sixth largest cable MSO in the U.S.
TPG Capital agreed to buy RCN and Grande in August 2016. Now the private equity group has decided to buy Wave from another private equity group, Oak Hill Capital Partners, and merge the three.
David Trujillo, partner at TPG Capital mentioned, High-quality, reliable communications infrastructure is increasingly important, and the acquisition of Wave is a transformative addition that will allow RCN to provide broadband-related services in new and growing markets.
Wave is a regional broadband fiber company offering a full suite of high-speed data, video, and voice services to residential and business customers. The deal is expected to close in the second half of this year.
Steve Weed,founder of Wave said, By expanding our footprint with Wave, we have created a market-leading broadband platform with national reach, broad capabilities and expertise, and exciting growth potential.
What Wave’s Partnership Means to RCN and TPG
Wave is a regional incumbent cable and broadband services provider reaching 673,000 homes and more than 1,800 unique commercial clients in Washington, Oregon, and California. The company has nearly 8,000 miles of owned fiber supporting its market-leading enterprise fiber business.
Waved founded by Steve Weed will join RCN as a Director upon the close of the transaction that is happening later in 2017. Wave will continue to operate as a branded entity, headquartered in Washington.
Demand for high-speech broadband services is growing rapidly as digital content continues to multiply. High-quality, reliable communications infrastructure is increasingly important, and the acquisition of Wave is a transformative addition that will allow RCN to provide broad-band related services in new and growing markets.
Cable operators are realizing the power of cooperation and partnership within their industry and also the mobile market. Companies want to expand as much as possible at a considerable rate in order to keep up with demand and competition.