ENGLEWOOD, Colo., Sept. 1, 2021 /PRNewswire/ — WOW! Internet, Cable & Phone (NYSE: WOW), a leading broadband service provider, today announced the completion of the sale of its Cleveland and Columbus, Ohio service areas to Atlantic Broadband, a U.S. cable operator and subsidiary of Cogeco Communications Inc. (TSE: CCA) (“Cogeco”) for $1.125 billion. From this sale, WOW! expects to use approximately $1.0 billion in net proceeds to pay down a portion of the company’s debt.
The transaction with Atlantic Broadband is one of two separate, previously announced agreements for WOW! to sell a total of five service areas for gross proceeds of $1.8 billion. WOW!’s other agreement to sell its Chicago, Evansville, Indiana, and Anne Arundel, Maryland, service areas for $661 million to Astound Broadband (dba RCN, Grande Communications and Wave Broadband) remains on track to close in the fourth quarter of 2021. The divestitures will strengthen WOW!’s financial position and help accelerate WOW!’s broadband-first strategy, which includes additional investments in edge-outs, greenfield strategies and commercial services.
“The closing of this deal with Atlantic Broadband is a significant step in the execution of our broadband-first strategy, at a critical time in our industry,” said Teresa Elder, CEO of WOW!. “Our strengthened balance sheet bolsters our ability to invest in key growth areas as we continue to provide reliable, accessible and fast broadband solutions to our customers across our remaining service areas. And we are confident that Atlantic Broadband will be a good steward for our Ohio service area employees and customers.”
Since the transaction was initially announced in June of 2021, WOW! has been preparing to transition employees and customers in its Cleveland and Columbus, Ohio, service areas to Atlantic Broadband. WOW! has entered into a Transition Services Agreement with Atlantic Broadband to support post-transaction continuity of service during a transition period.
BofA Securities is acting as financial advisor to WOW!, and Wachtell, Lipton, Rosen & Katz, as well as Honigman LLP, are serving as legal counsel.