Frontier Communications sells assets
Transaction includes two stores in North IdahoJune 6th, 2019
Connecticut-based telecommunications company Frontier Communications Corp. has agreed to sell its assets and operations in Washington, Oregon, Idaho, and Montana to Kirkland-based WaveDivision Capital LLC and Searchlight Capital Partners LLC for $1.35 billion, subject to certain closing adjustments.
Frontier Communications, which is based in Norwalk, Connecticut, says its operations in those states serve more than 350,000 residential and commercial customers, and account for $619 million of revenue, $46 million of net income and $272 million of adjusted earnings before interest, tax, depreciation, and amortization for the twelve months ending March 31, 2019.
The sale would include two stores in North Idaho, one at 2115 Government Way in Coeur d’Alene, and another at 750 Kootenai Cut Off Road in Ponderay.
The company provides high-speed internet and video services and offers bundles with TV and phone service providers in urban, suburban, and rural communities in 29 states through copper-wire and fiber-optic networks.
Dan McCarthy, Frontier president and CEO, says in a press release the sale proceeds are likely to be used to pay off financial obligations, while strengthening its liquid assets.
“We are pleased to have a buyer with extensive experience building and operating advanced fiber-based communications assets in these regions,” he says. “We will be working very closely with the new owners to ensure a smooth, successful transition for our customers and the communities we serve.”
WaveDivision Capital is headed by broadband entrepreneur Steve Weed, who says, “Having grown up in the Northwest, I’m excited to be able to continue to serve my community through this new venture.”
Frontier will continue to operate the business with existing products and services until the transaction is completed, which is expected to occur within the year. It’s also agreed to provide certain transition services to the new ownership group following the closing.
WaveDivision Capital is a private investment firm focused on the broadband industry. The company’s goal is to bring better internet connections to more homes and businesses throughout North America.
Searchlight is a global private investment firm with offices in New York, London, and Toronto.