In a bid to bolster cash, improve its credit profile, and gain more focus on core business units, Windstream sold its legacy Earthlink consumer ISP business to Dallas-based private equity firm Trive Capital. Windstream purchased all of Earthlink in 2017.
The $330 million cash deal includes 600K customers from all across the U.S. (including a fair amount of legacy dial-up customers I presume). Also included in the deal are online back-up, managed web design, web hosting and various email services.
Earthlink was an early pioneer in the consumer ISP business and was a key provider of dial-up Internet access services. The company shifted its focus over the years to business and enterprise services, which is how it became a takeover target for Windstream.
“This transaction enables us to divest a non-core segment and focus exclusively on our two largest business units,” said Tony Thomas, president and CEO of Windstream in a prepared statement.
For its part, Trive executives say they want to grow the Earthlink brand.
“We are excited to partner with and support the EarthLink management team in continuing to provide great products and services available to millions of households in the United States,” commented Trive Managing Partner, Conner Searcy in a press release. “We intend to provide additional resources and access to deep industry relationships to help grow the brand in the coming years.”
