Colorado-based cableco WOW! has agreed to acquire NuLink’s cable systems in Newnan, Georgia, located south-west of Atlanta. NuLink, which was spun-off from Newnan Utilities in 2008, upgraded its network in 2011 to provide a full suite of broadband, cable TV and telephone services, and currently offers services to over 34,000 homes and businesses. It was acquired from Halyard Capital, a New York-based private equity firm. According to a filing with the Securities and Exchange Commission (SEC), the purchase price was USD53 million, while NuLink’s adjusted EBITDA for the year ended 31 December 2015 was USD8.4 million. The transaction is expected to close by end-2016.
Steven Cochran, CEO of WOW!, commented: ‘We plan to continue investing in the local network infrastructure to bring even faster Internet to residential and business customers with speeds as high as 1Gbps. All of us at WOW! are committed to providing an outstanding customer experience and we look forward to serving the community.’
According to TeleGeography’s GlobalComms Database, WOW! is currently the ninth largest cableco in the US, although it is set to rise in the rankings due to the recent spate of cable-based M&A activity. The takeover of NuLink offers a clear indication that WOW! intends to remain an acquisitive party, rather than succumbing to a possible approach from one of its larger rivals.