Cable One (NYSE:CABO) has entered into a definitive agreement to acquire Clearwave Communications, a facilities-based service provider that owns and operates a high-capacity fiber network offering regional coverage in southern Illinois.
The acquisition is intended to provide Cable ONE with a fiber network within its existing footprint and further enable the company to supply its customers with enhanced business services. The acquisition will also provide a platform to allow Cable ONE to replicate Clearwave's strategy in several of the company's existing markets. Clearwave has more than 2,400 route miles of metro fiber infrastructure connecting approximately 2,700 on-net businesses, towers and data centers. Clearwave is headquartered in Harrisburg, IL, and is majority-owned by funds affiliated with Stephens Capital Partners.
"We are excited to partner with the Clearwave team, who have built a highly successful business services platform in non-urban markets with similar characteristics to ours," said Julie Laulis, president and CEO of Cable ONE. "This transaction provides us with a unique opportunity to continue to grow Clearwave in its existing footprint as well as expand our fiber footprint and enterprise business segment."
"This is a very exciting day for our employees, customers and shareholders," said Matt Dement, president and CEO of Clearwave. "Since inception, Clearwave has been dedicated to deploying best-in-class network infrastructure across southern Illinois. As a part of Cable ONE, we will have the opportunity to significantly expand our geographic presence while maintaining our core values of quality, reliability and superior customer support."
The all-cash transaction is expected to be funded through Cable ONE's cash on hand and its existing revolving credit facility. The transaction is subject to certain regulatory approvals and other customary closing conditions and is expected to be completed during the first quarter of 2019.