Cable MSO WOW! Internet, Cable & Phone (NYSE: WOW) says it has closed the sale of its service areas in Chicago, Evansville, IN, and Anne Arundel, MD, to Radiate HoldCo, LLC, a telecommunications holding company affiliated with the three companies that compose Astound Broadband: RCN Telecom Services, LLC, Grande Communications Networks, LLC, and WaveDivision Holdings, LLC (see “Stonepeak Infrastructure Partners to buy Astound Broadband"). The deal nets WOW! $661 million.
WOW! announced earlier this year it would sell the three service areas to Astound Broadband as well as its Cleveland and Columbus, OH, service areas to Atlantic Broadband (see “WOW! to sell service areas to Atlantic Broadband, Astound Broadband”). Together, the sales are worth $1.8 billion, the broadband service provider states. The company says it will use the funds to reduce debt, strengthen its financial position, and enhance its activities in its remaining service areas. WOW! asserts its network passes 1.9 million residential, business, and wholesale consumers in 14 markets. Those market primarily are located in the Midwest and Southeast, including Michigan, Alabama, Tennessee, South Carolina, Florida, and Georgia.
"The completion of the Astound Broadband transaction is another important step in the execution of our broadband-first strategy," said Teresa Elder, CEO of WOW!. "We remain committed to providing customers with reliable, accessible, and fast broadband solutions, and now we have an even greater ability to enhance our network and expand our footprint through greenfield and edge-out opportunities."
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