TDS announced its latest acquisition target. Merrimac Communications of Merrimac, Wisc. fits the pattern of recent TDS acquisitions – a small triple play provider that complements existing TDS markets, adding additional subscribers and network capacity.
Merrimac Communications passes about 6,000 homes in Sauk, Columbia, and Dane counties, which are neighboring communities in TDS’ Wisconsin footprint. Merrimac offers a triple play bundle and security services. The service provider does have some existing FTTH infrastructure.
“This investment provides an excellent clustering opportunity for our TDS operations in Wisconsin,” states Jim Butman, chief operating officer at TDS in a press release. “Merrimac Communications services areas nestled between communities TDS already serves, which will allow us to easily connect our network and infrastructure in Dane County with Merrimac’s local operations.”
TDS says it plans to launch its IPTV service TDS TV, as well as build out additional fiber connections after the acquisition is complete. The transaction is subject to customary local and federal regulatory approvals. Terms of the transaction were not disclosed.
Several years ago, TDS announced a strategy to be opportunistic with cable property acquisition. They recently purchased Crestview Cable and K2 Communications. Larger cable company acquisitions have included Bend Broadband and Baja Broadband. We expect to see more.
