RCN, Grande and Wave Broadband join forcesMonday, May 22nd, 2017
Creates 6th Largest Cable Operator Across 7 of 10 Top U.S. Cities
PRINCETON, New Jersey — RCN Telecom Services, LLC, an award-winning provider of high-speed internet, digital TV and phone services, announces the combining of RCN, Grande Communications and Wave Broadband to create the sixth largest cable operator. The transaction is expected to close in the second half of 2017 and is subject to customary closing conditions, including regulatory approvals.
In August 2016, TPG Capital, the global private equity platform of alternative asset firm TPG, acquired RCN as well as Grande Communications Networks LLC (“Grande”). Bringing RCN and Grande together created a regional market leader in next-generation, high-speed data services for residential and business customers with a presence spanning the East Coast, Chicago, and Texas. Currently owned by Oak Hill Capital Partners, Wave management, and GI Partners, Wave is a regional broadband fiber company offering a full suite of high-speed data, video, and voice services to residential and business customers in the north west. TPG is providing the financial backing of this $2.36 billion transaction between RCN, Grande Communications and Wave.
The combination of RCN and Wave establishes a diversified fiber rich network across seven of the top 10 U.S. cities. The transaction reflects RCN’s strategy of identifying and partnering with unique companies delivering innovative technologies and customer service strategies. RCN continually redefines the customer experience with the latest trends and newest technology, and the addition of Wave aligns with RCN’s strategy of delivering value to customers.
“RCN, together with Grande and Wave, has tremendous growth potential with the combined company. We will continue to enhance broadband, entertainment and communication solutions that focus on providing high-quality, reliable services along with best-in-class customer service to both business and residential customers,” said Jim Holanda, CEO of RCN and Grande. “This acquisition expands the breadth and depth of RCN’s fiber rich network to 17,000 miles serving 2.7 million homes passed with over 925,000 residential and business customers delivering close to 1.7 million data, voice and video services. The combined companies will continue to provide customers top-rated and award-winning options at a time when consumer trends and business needs are evolving at an astounding rate.”
With the growing need for data bandwidth, joining forces with a provider like Wave enables RCN to collaborate and leverage critical technology to remain at the forefront of innovation offering customers the fastest speeds, more TV entertainment choices, and the best customer experience, added Holanda.
“We are excited that our new partners in TPG and RCN recognize the value of what we have created at Wave, and share our passion for creating happy customers – we are eager to enter our next era of growth alongside them,” said Steve Weed, Founder and CEO of Wave. “Over the last several years we have accelerated our growth substantially by expanding from our heritage of residential broadband services into enterprise grade fiber,” added Weed.
RCN, Grande and Wave are leading local gigabit fiber and broadband providers with fiber rich networks that offer a full suite of data, video, and phone services to both residential and business customers. Steve Simmons, Chairman and Jim Holanda, the current CEO of RCN and Grande, along with the existing senior executive team will lead the new combined entity.