Mergers & Acquisitions

Mergers & Acquisitions

August 29, 2011

Wave Broadband, WOW! Acquire Broadstripe LLC

Wave Broadband, a cable, Internet and phone services company, and WOW! Internet, Cable, and Phone (News - Alert) have signed an agreement to purchase substantially all of the assets of Broadstripe LLC, a provider of residential and commercial bundled communications services.

Broadstripe had filed for Chapter 11 bankruptcy protection in January 2009. Consequently, Broadstripe is being acquired by other companies. It operates in Maryland, Michigan, Oregon, and Washington. DH Capital is providing advisory services to the company on the transaction.

Now, Wave Broadband - currently operating in California, Oregon, and Washington, and serving over 300,000 customers - will acquire Broadstripe’s Washington and Oregon properties that reach over 103,000 homes. While, WOW! will add 92,000 households from Broadstripe's Michigan systems to the 1.5 million households it already serves in Illinois, Indiana, Michigan, and Ohio.

In addition, Broadstripe's Maryland system operating in Anne Arundel County will be acquired by Anne Arundel Broadband, LLC. This newly formed entity will be operated by industry veterans to include John Bjorn, Broadstripe's current executive VP of regional operations.

Wave Broadband is part of WaveDivision Holdings, LLC - a cable, internet and phone services company. The WaveDivision Holdings operates under three retail brands: Wave Broadband, serveing customers in western Washington, Oregon, and communities surrounding Sacramento, California; Astound Broadband serving San Francisco Bay Area customers; and Wave/Astound Business Solutions providing business-class internet, phone and cable service to companies of all sizes, from Seattle to San Francisco.

Steve Weed, CEO of Wave Broadband, said, "With this acquisition, Wave continues a tradition of expansion in strategic West Coast markets. Wave's successful growth stems from our sincere commitment to providing superior products and exceptional service to our customers. And we look forward to serving these communities."

WOW! is owned by Avista Capital Partners, which acquired the company in 2006. The company acquired SIGECOM in Evansville, Indiana the following year.

According to sources, the recent sale of Broadstripe must be approved by the Bankruptcy Court. Upon approval, the transition is expected to take up to four months before the sale can be officially completed.

DH Capital, which is providing advisory services to Broadstripe on this transaction, is a New York City-based private investment banking partnership serving companies in the communications and Internet infrastructure sectors. It provides a full range of advisory services to companies and financial institutions, such as mergers and acquisitions, private capital placements, financial restructuring, and operational consulting.

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Jayashree Adkoli is a contributing editor for TMCnet. To read more of Jayashree's articles, please visit her columnist page.

Edited by Rich Steeves

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