Equity Firm to Combine Wave Broadband with RCN
The sixth largest internet and cable operator in the United States is being formed as Wave Broadband is set to join up with RCN after customary closing conditions of an M&A deal announced this week. The transaction is expected to close in the fourth quarter of 2017 following regulatory approvals. Last year, private equity firm TPG Capital acquired1 both RCN and Grande Communications, and TPG is now leading the $2.36 billion acquisition of Wave to combine it with RCN. While it will be combined with RCN, Wave will continue to operate as a branded entity headquartered in Kirkland, Wash., serving business and residential customers in Washington, Oregon, and California. RCN provides similar services along the East Coast and in Chicago, while Grande operates in Texas.
Wave’s CEO Steve Weed will join the combined company’s board of directors, and Wave management “will remain significant investors, partnering with majority owner TPG,” according to a statement put out by the company.
“Over the last several years we have accelerated our growth substantially by expanding from our heritage of residential broadband services into enterprise grade fiber,” Steve Weed, founder and CEO of Wave, comments. “We are excited that our new partners in TPG and RCN recognize the value of what we have created, and share our passion for creating happy customers.
We are eager to enter our next era of growth alongside them.”