Cable MSO Cable ONE, Inc. (NYSE: CABO) says it has agreed to purchase Clearwave Communications, a facilities-based service provider that owns and operates a fiber-optic network in Southern Illinois. The all-cash purchase, expected to close in the first quarter of 2019, will enhance Cable ONE’s ability to serve business customers in that part of the state. Cable ONE did not disclose how much it will pay for the assets.
Cable ONE expects to fund the deal via cash on hand and an existing revolving credit facility. Clearwave, headquartered in Harrisburg, IL, owns more than 2,400 route miles of metro fiber infrastructure that links approximately 2,700 on-net businesses, towers, and data centers (see, for example, "Clearwave chooses Cyan, Juniper Networks for Southern Illinois Data Center and broadband stimulus project"). It is majority owned by funds affiliated with Stephens Capital Partners LLC, the private equity arm of Stephens Inc.
“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.”
Cable ONE is among the 10 largest cable companies in the United States, serving residential and business customers in 21 states. Cable ONE Business targets small to mid-market businesses, in addition to enterprise, wholesale, and carrier customers.
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