TPG Capital, the global private equity platform of alternative asset firm TPG, has announced that it is backing a deal which will see its cable subsidiary RCN Telecom combine with Washington-based Wave Broadband for USD2.4 billion. The latter is currently owned by Oak Hill Capital Partners, GI Partners and members of the Wave management team. According to TPG, the combination of RCN and Wave will create the nation’s sixth largest cable operator, with a diversified presence across seven of the top ten cities in the US. The transaction is expected to close in the second half of 2017 and is subject to customary closing conditions, including regulatory approvals.
Wave Broadband is a regional incumbent cable and broadband services provider reaching 673,000 homes and more than 1,800 unique commercial clients in Washington, Oregon, and California. The company has nearly 8,000 miles of owned fibre supporting its market-leading enterprise fibre business. Wave will continue to operate as a branded entity, headquartered in Kirkland, Washington.
As previously reported by TeleGeography’s CommsUpdate, in August 2016 TPG entered into definitive agreements to acquire RCN (USD1.6 billion) and its sister company Grande Communications Networks (USD650 million) through separate transactions. The combination gave the business a presence spanning the East Coast, Chicago and Texas. The addition of Wave will expand RCN’s footprint to the West Coast.